Question

What is "Ultimate Net Loss" in reinsurance?

a.

The total loss incurred by the reinsured

b.

The gross loss before any reinsurance recoveries

c.

The net loss after deducting defense costs

d.

The amount actually paid for the settlement of a claim

Posted under IC85 Reinsurance Management

Answer: (b).The gross loss before any reinsurance recoveries Explanation:"Ultimate Net Loss" refers to the unit of loss to which reinsurance applies, as determined by the reinsurance agreement. It represents the gross loss incurred, minus any recoveries from other reinsurance that reduce the loss specifically for the treaty in question.

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Q. What is "Ultimate Net Loss" in reinsurance?
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