Question

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

a.

Provide bordereaux

b.

Build up a treaty with a reasonable balance

c.

Accept shares without insisting on any bordereaux

d.

Try out different limits and note the resultant premium to liability balance

Answer: (a).Provide bordereaux Explanation:When the Auto/Fac cover contains only peak risks and a large reinsurance capacity is required, it may be worthwhile providing bordereaux.

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

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