Question

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

a.

The excess of loss reinsurer pays the claims up to the loss retention figure

b.

The ceding insurer is left with a totally inadequate premium to pay claims up to the loss retention figure

c.

The ceding insurer agrees to pay the excess of loss reinsurer's requested share

d.

None of the above

Answer: (b).The ceding insurer is left with a totally inadequate premium to pay claims up to the loss retention figure Explanation:When the excess of loss reinsurer asks for too big a share of the original premium, the ceding insurer is left with a totally inadequate premium to pay claims up to the loss retention figure.

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

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