Question

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

a.

By quota share reinsurance on policies

b.

By working excess of loss cover

c.

Both a and b

d.

By keeping a share of the first surplus treaty for the net account

Posted under IC85 Reinsurance Management

Answer: (c).Both a and b Explanation:The problem of accumulation of risk in conflagration areas is solved by either quota share reinsurance on policies or working excess of loss cover or both, depending on the circumstances of the case.

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