Question

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

a.

There may be situations where some losses would not be covered under traditional separate insurances but are covered under the package.

b.

All Risks packages are more expensive than traditional separate insurances.

c.

All Risks packages are only available through a quota-share or surplus reinsurance.

d.

All Risks packages offer the same coverage as traditional separate insurances.

Answer: (a).There may be situations where some losses would not be covered under traditional separate insurances but are covered under the package. Explanation:An "All Risks" package offers cover on a seamless basis, and there may be situations of some losses which would not be covered under traditional separate insurances but are covered under the package.

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

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