Question

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

a.

By scaling down by a percentage the normal retention

b.

By fixing aggregate limits area-wise

c.

By increasing aggregate limits area-wise

d.

Either a or b

Posted under IC85 Reinsurance Management

Answer: (d).Either a or b Explanation:Exposure per event can be controlled by scaling down the normal retention by a percentage or by fixing aggregate limits area-wise.

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