Question

What does "Underlying" refer to in insurance or reinsurance?

a.

The primary layer of insurance or reinsurance coverage

b.

The excess layer of insurance or reinsurance coverage

c.

The retrocession layer of reinsurance coverage

d.

The net loss after deducting recoveries and reinsurance

Posted under IC85 Reinsurance Management

Answer: (a).The primary layer of insurance or reinsurance coverage Explanation:"Underlying" represents the amount of loss that attaches before the next higher excess layer of insurance or reinsurance comes into effect. It refers to the primary layer of coverage.

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Q. What does "Underlying" refer to in insurance or reinsurance?
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