Question

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

a.

Liability arising from accidents involving multiple parties

b.

Liability for losses that occur after the policy period has ended

c.

Liability associated with delayed claims settlement

d.

Liability for losses caused by natural disasters

Posted under IC85 Reinsurance Management

Answer: (c).Liability associated with delayed claims settlement Explanation:"Long-Tail Liability" refers to certain types of third-party liability exposures where the incidence of loss and determination of damages are subject to delays extending beyond the term of insurance or reinsurance coverage. It involves situations where claims are discovered or reported long after the policy period has ended.

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