Question

What is the key feature of a multi-trigger cover in insurance?

a.

It requires more than one triggering event for coverage

b.

It provides coverage for losses caused by multiple perils

c.

It allows for lower premium rates for insurers

d.

It adjusts financial losses based on agreed commodity price movements

Posted under IC85 Reinsurance Management

Answer: (a).It requires more than one triggering event for coverage Explanation:A multi-trigger cover requires more than one triggering event for coverage. In traditional insurance policies, coverage is typically triggered by a single event caused by an insured peril. However, multi-trigger covers involve multiple triggering events, which can help reduce the probability of loss payment and potentially result in lower premium rates for insurers.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the key feature of a multi-trigger cover in insurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is an example of a double-trigger policy?

View solution

Q. What is the advantage of a multi-trigger cover for insurers?

View solution

Q. What is the purpose of contingent capital in risk management?

View solution

Q. How does contingent capital function in risk financing?

View solution

Q. What is a variant to the assurance of contingent capital?

View solution

Q. Why are contingent capital solutions popular with direct insurers?

View solution

Q. What is the main idea behind a Finite Risk program?

View solution

Q. What is the characteristic of premium payments in a Finite Risk program?

View solution

Q. How are finite risk solutions typically written?

View solution

Q. What is the role of investment income in premium calculation for Finite Risk programs?

View solution

Q. What is the concern raised by critics regarding finite risk or nontraditional insurance products?

View solution

Q. What is the requirement for a reinsurance contract to be considered as reinsurance for accounting purposes?

View solution

Q. What is the "10-10 rule" regarding risk transfer?

View solution

Q. What is the primary objective of financial reinsurance?

View solution

Q. How is financial reinsurance different from finite reinsurance?

View solution

Q. What does the ceding insurer receive in financial reinsurance?

View solution

Q. How is the amount of ceding commission determined in financial reinsurance?

View solution

Q. What does the ceding insurer appropriate the ceding commission for in financial reinsurance?

View solution

Q. What type of risk transfer is involved in financial reinsurance?

View solution

Q. Where is financial reinsurance often used as a means to increase solvency margin?

View solution
View All MCQs on IC85 Reinsurance Management

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!

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....