Question

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

a.

It refers to the limit of insurance set by an insurer on a class of risk

b.

It denotes the number of underwriters involved in a reinsurance contract

c.

It describes the length of time a reinsurance contract remains in force

d.

It represents the total premium income generated by a reinsurer

Posted under IC85 Reinsurance Management

Answer: (a).It refers to the limit of insurance set by an insurer on a class of risk Explanation:The term "Line" can have multiple meanings in reinsurance. In one context, it refers to the limit of insurance that an insurer has set for itself on a class of risk. It can also represent the actual amount accepted on a single risk or other unit.

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