Question

How does the Company determine the claim period in case a catastrophe involves multiple insured perils?

a.

The Company chooses the period based on the highest loss value

b.

The Company selects the period based on the earliest recorded individual loss

c.

The Company divides the catastrophe into separate Loss Occurrences for each insured peril

d.

The Company follows a predetermined schedule for claim period determination

Answer: (b).The Company selects the period based on the earliest recorded individual loss Explanation:In case a catastrophe involves multiple insured perils, the Company determines the claim period by selecting the period that aligns with the date and time of the happening of the first recorded individual loss to the Company in that catastrophe. This ensures that each Loss Occurrence is based on the earliest loss recorded and avoids overlapping periods.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the Company determine the claim period in case a catastrophe involves multiple insured perils?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of the index clause in the reinsurance agreement?

Q. Under what condition is the index clause not applied in the reinsurance agreement?

Q. How is the time of payment of any claim determined in the reinsurance agreement?

Q. What happens to the priority and liability in the index clause when the Index fluctuates by 10% or more?

Q. What is the condition precedent to any liability to pay under the reinsurance contract?

Q. What does the claims control clause in the policy state?What role does the lead Reinsurer have in the claims co-operation clause?

Q. What does the claims control clause in the policy state?

Q. How do the reinsurers follow the fortunes of the insurers in the claims control clause?

Q. Which of the following is excluded from coverage under the political risks exclusion clause?

Q. What is the definition of an act of terrorism as per the endorsement?

Q. What is the burden of proof in case the Reinsurer claims that a loss is excluded under the political risks exclusion clause?

Q. Which of the following is not excluded under the political risks exclusion clause?

Q. According to the terrorism exclusion clause, which of the following is true?

Q. How is "Terrorist Activity" defined under the terrorism exclusion clause?

Q. Which of the following activities or threats are associated with "Terrorist Activity" as per the exclusion clause?

Q. Who determines whether an act constitutes a "Terrorist Activity" as per the exclusion clause?

Q. According to the terrorism exclusion clause, which of the following is true regarding the coverage of losses?

Q. What is the purpose of the terrorism exclusion clause in the reinsurance agreement?

Q. In the terrorism exclusion clause, what does it mean when it states that the exclusion applies "regardless of any other cause or event"?

Q. Who has the burden of proving the coverage for losses excluded under the terrorism exclusion clause?

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!