Question

What is the problem with determining accumulation of risk?

a.

The difficulty in ascertaining the PML

b.

The administrative effort of ascertaining the total net commitment within an area

c.

The difficulty in demarcating the area which can be considered as exposed to one event

d.

The difficulty in determining the aggregate sum insured retention per conflagration area or catastrophe peril exposure zone

Answer: (c).The difficulty in demarcating the area which can be considered as exposed to one event Explanation:The problem with determining accumulation of risk is the difficulty in demarcating the area which can be considered as exposed to one event.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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?

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

Q. What is the potential solution to the problem of catastrophe covers that reinsurers may consider?

Q. How is the surplus in excess of the first surplus treaty ceded?

Q. What is the maximum liability for the second surplus treaty determined by?

Q. When is it possible to build up a treaty with a reasonable balance?

Q. What information do reinsurers require when Auto/Fac cover contains only peak risks?

Q. What do reinsurers on higher surpluses and on facultative reinsurance examine?

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!