Question

What is a "layer" in the context of excess of loss reinsurance?

a.

The primary layer of insurance coverage provided by the reinsurer

b.

The portion of the reinsurance contract specifying terms and conditions

c.

The total amount of reinsurance protection needed by the insurer

d.

A separate contract within a series providing a specific limit of coverage

Posted under IC85 Reinsurance Management

Answer: (d).A separate contract within a series providing a specific limit of coverage Explanation:In excess of loss reinsurance, the total amount of reinsurance protection needed by the insurer is split into separate contracts or layers, each with its own limit of coverage. These layers fit on top of each other and have similar or identical terms.

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Q. What is a "layer" in the context of excess of loss reinsurance?
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