Question

What is the purpose of splitting the cover into layers in excess of loss cover?

a.

To provide protection for accumulation on shore

b.

To reduce the premium for excess of loss cover

c.

To avoid large losses or exposures on shore

d.

To provide automatic reinsurance facility

Posted under IC85 Reinsurance Management

Answer: (c).To avoid large losses or exposures on shore Explanation:Splitting the cover into layers helps in avoiding large losses or exposures on shore. It is because the higher layers are rated on a subjective assessment of the accumulation hazard at ports.

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Q. What is the purpose of splitting the cover into layers in excess of loss cover?
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