Question
a.
To ensure full coverage of all outstanding losses
b.
To provide a safeguard to the reinsurer in the event of the ceding insurer's insolvency
c.
To determine the timing of loss reserve adjustments
d.
To comply with legal requirements regarding loss reserves
Posted under IC85 Reinsurance Management
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Q. What is the purpose of establishing a loss reserve at a fixed rate of 100 or 90% of the outstanding losses?
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