Question

What does the provision of cash loss in proportional contracts allow the reinsured to do?

a.

Make immediate claims for small losses

b.

Make periodic accounting settlements

c.

Receive immediate settlement for large losses

d.

Receive advance premium payments

Posted under IC85 Reinsurance Management

Answer: (c).Receive immediate settlement for large losses Explanation:The provision of cash loss in proportional contracts enables the reinsured to make a claim and receive immediate settlement for a large loss outside of the usual periodic accounting and settlement procedures.

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Q. What does the provision of cash loss in proportional contracts allow the reinsured to do?
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