Question

What does the "Net Line" represent in insurance?

a.

The total amount of insurance carried by the primary insurer on a risk

b.

The amount of insurance after deducting reinsurance from the gross line

c.

The maximum limit of reinsurance coverage under a specific contract

d.

The amount of insurance written by the reinsurer on a risk

Posted under IC85 Reinsurance Management

Answer: (b).The amount of insurance after deducting reinsurance from the gross line Explanation:The "Net Line" refers to the amount of insurance carried by the primary insurer on a risk after deducting reinsurance from its gross line. It represents the net exposure retained by the primary insurer.

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