Question

What is a ground-up loss in insurance?

a.

The loss amount after applying the deductible

b.

The total loss incurred by the insured before any deductions

c.

The loss amount subject to per risk excess coverage

d.

The net loss after accounting for reinsurance recoveries

Posted under IC85 Reinsurance Management

Answer: (b).The total loss incurred by the insured before any deductions Explanation:In insurance, a ground-up loss refers to the gross amount of loss occurring to an insured and subject to the insured's insurance policy. It represents the total loss before the application of deductibles or any other deductions required by the policy.

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