Question

Why are catastrophe covers normally split into layers?

a.

To provide marketing advantages

b.

To increase the insurer's retention capacity

c.

To provide coverage for commercial risks

d.

To make it easier for reinsurers to assess their exposures

Answer: (a).To provide marketing advantages Explanation:Catastrophe covers are normally split into layers for marketing and rating advantages.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why are catastrophe covers normally split into layers?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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?

Q. When may insurers resort to group underwriting?

Q. What is group underwriting?

Q. For what type of risks is reinsurance on an excess of loss basis possible?

Q. What happens when the excess of loss reinsurer asks for too big a share of the original premium?

Q. What types of risks are covered under engineering insurance?

Q. Why do many insurers need to liaise with specialist reinsurers in engineering insurance?

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!