Question

What is the restriction in treaty capacity for Industrial All Risks reinsurance involving high exposure risks?

a.

The treaty capacity remains the same

b.

The treaty capacity is increased

c.

The treaty capacity is restricted to moderate amounts

d.

The treaty capacity is restricted to large amounts

Answer: (c).The treaty capacity is restricted to moderate amounts Explanation:If risks with high exposure to loss like Petrochemicals or Explosives etc. are involved, the treaty capacity would be restricted to moderate amounts and a major portion of the risks will have to be facultatively reinsured.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the restriction in treaty capacity for Industrial All Risks reinsurance involving high exposure risks?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What type of risks are covered under All risks property package reinsurance?

Q. How does the geographical territory basis operate in All risks property package reinsurance?

Q. What is the difference between an All Risks package and traditional separate insurances?

Q. Why can't department-wise reinsurance arrangements of the insurer be utilized for All Risks packages?

Q. What type of reinsurance support is needed for an All Risks package?

Q. Who controls the terms, conditions, and all aspects of an All Risks package?

Q. Why are markets for All Risks packages with enough capacity limited in number?

Q. What types of risks are covered by the accident/liability reinsurance?

Q. What is the most common form of reinsurance used for accident/liability reinsurance?

Q. How is motor insurance typically reinsured in India?

Q. How are high value vehicles typically insured in accident/liability reinsurance?

Q. How are personal accident risks typically addressed in accident/liability reinsurance?

Q. What events led to a reconsideration of the approach to personal accident insurance in India?

Q. What factors affect the approach to the risk of burglary exposure?

Q. What is the difference in approach towards employer's liability between India and the USA?

Q. What is the major difference between marine insurance and most other non-life classes of insurance?

Q. What is the role of a marine underwriter?

Q. What has the varied perils to which ships and cargo are exposed over many years resulted in?

Q. Why do marine reinsurers have to adopt different attitudes and practices than non-marine reinsurers?

Q. What is the difference between the problems of reinsurance for ocean-going vessels and local crafts?

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!