Question

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

a.

The maximum amounts of interest insured

b.

The contractual provisions for claim settlements

c.

The specific coverage exclusions in reinsurance contracts

d.

The regulatory limits imposed on reinsurance companies

Posted under IC85 Reinsurance Management

Answer: (a).The maximum amounts of interest insured Explanation:The term "Limits" in reinsurance refers to the maximum amounts of interest insured. It can refer to the cedant's retention, the cedant's gross capacity, or the maximum amount that can be reinsured under a reinsurance contract.

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