Question

What is the purpose of a schedule of retentions?

a.

To determine the PML exposure per event

b.

To control exposures per risk

c.

To modify the aggregate limits area-wise

d.

To simplify the procedures for reinsurance position

Answer: (b).To control exposures per risk Explanation:The purpose of a schedule of retentions is to control exposures per risk.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of a schedule of retentions?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which of the following is a catastrophe peril?

Q. How is exposure per event controlled in areas with multiple risks affected by one event?

Q. Why is it difficult to determine accumulation in catastrophe perils?

Q. What is the purpose of catastrophe cover protection?

Q. What is the purpose of a well-drawn schedule of retentions?

Q. Why is catastrophe cover protection needed?

Q. What is the problem with determining accumulation of risk?

Q. How is the problem of accumulation of risk in conflagration areas solved?

Q. How do insurers augment their retention?

Q. What is the purpose of a catastrophe cover?

Q. What is the problem with placing catastrophe covers without proper data?

Q. What has made catastrophe covers progressively more exposed?

Q. Why are catastrophe covers normally split into layers?

Q. Why are reinsurers growing more insistent on receiving underwriting data?

Q. What is the basis for rating the first layer of catastrophe cover?

Q. What is the concern of reinsurers regarding the ceding insurer on catastrophe covers?What is the purpose of a second surplus treaty?

Q. What is the concern of reinsurers regarding the ceding insurer on catastrophe covers?

Q. What do reinsurers require regarding the portfolio of business ceded under Auto/Fac cover?

Q. What should be done when the Auto/Fac cover contains only peak risks and a large reinsurance capacity is required?

Q. What factors affect the rating of the first layer of catastrophe cover?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!