Question

How is the per event retention managed?

a.

Through reinsurance

b.

Through reasonable estimation of financial consequences and catastrophe reserve

c.

Through investment in high-risk ventures

d.

Through increasing premiums

Posted under IC85 Reinsurance Management

Answer: (b).Through reasonable estimation of financial consequences and catastrophe reserve Explanation:The per event retention is managed through reasonable estimation of financial consequences and through causing a catastrophe reserve for funds to accumulate and be available over the long term.

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Q. How is the per event retention managed?
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