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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Who is a "Lead Underwriter" in reinsurance?

View solution

Q. What does the term "Limits" refer to in reinsurance?

View solution

Q. How is the term "Line" used in the context of reinsurance?

View solution

Q. What is meant by "Long-Tail Liability" in insurance and reinsurance?

View solution

Q. What are "Losses Outstanding" in reinsurance?

View solution

Q. What does the "Losses occurring basis" refer to in excess of loss insurance?

View solution

Q. What do "Losses Paid" refer to in insurance?

View solution

Q. How is the "Loss Ratio" calculated in insurance?

View solution

Q. What is the purpose of a "Loss Ratio Stabilising Clause"?

View solution

Q. What does the "Net Line" represent in insurance?

View solution

Q. What is an "Obligatory Treaty" in reinsurance?

View solution

Q. How is "occurrence" defined in insurance?

View solution

Q. What does "offset" mean in the context of agreements or transactions?

View solution

Q. What are "Original Conditions" in reinsurance?

View solution

Q. What is an "Original Insurer" in the context of reinsurance?

View solution

Q. What does "PML" stand for in insurance terminology?

View solution

Q. How is a "Pool" defined in the insurance and reinsurance industry?

View solution

Q. What does "Portfolio" refer to in the insurance and reinsurance context?

View solution

Q. What is "Portfolio Runoff" in reinsurance?

View solution

Q. What is a "Portfolio Transfer" in the insurance and reinsurance industry?

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!

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Mechanical Engineering

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

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...