Question

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

a.

Through a second surplus treaty

b.

Through Auto/Fac cover

c.

Facultatively

d.

All of the above

Answer: (d).All of the above Explanation:The surplus in excess of the first surplus treaty limits is ceded through a second surplus treaty, Auto/Fac cover, and facultatively. Rarely, a third surplus treaty exists.

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

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