Question

How is the premium for excess of loss cover determined?

a.

By studying the pattern of exposures in the portfolio

b.

Based on past loss record

c.

Through a technical rating of the basis cover

d.

By assessing the accumulation hazard at ports

Posted under IC85 Reinsurance Management

Answer: (b).Based on past loss record Explanation:Reinsurers may have to fall back on the claims record to derive their rates for excess of loss cover.

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