Question

What is the characteristic of a "Working Excess" reinsurance cover?

a.

It provides coverage for high severity losses

b.

It has a high indemnity and a high retention

c.

It anticipates loss frequency rather than loss severity

d.

It is a contract that covers all types of reinsurance

Posted under IC85 Reinsurance Management

Answer: (c).It anticipates loss frequency rather than loss severity Explanation:A "Working Excess" is a type of excess reinsurance cover that anticipates loss frequency. It usually has a low indemnity and attaches above a relatively low retention. This implies that it focuses on covering frequent losses rather than severe losses.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the characteristic of a "Working Excess" reinsurance cover?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does "Utmost Good Faith" mean?

View solution

Q. What is the definition of "Unearned Premium Reserve"?

View solution

Q. What does the term "Underwriting-Year Basis" refer to in rating?

View solution

Q. What is the meaning of "Underwriting Year Experience"?

View solution

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

View solution

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

View solution

Q. What is a "Treaty" in the context of reinsurance?What is the meaning of "Uberrimae Fidei"?

View solution

Q. What is a "Treaty" in the context of reinsurance?

View solution

Q. What is a "Syndicate" in the insurance industry?

View solution

Q. What is a "Surplus Treaty" in pro rata reinsurance?

View solution

Q. What is "Surplus Reinsurance"?

View solution

Q. What is "Stop-Loss Reinsurance" also known as?

View solution

Q. What is "Solvency Margin"?

View solution

Q. What is a "Slip" in the context of reinsurance?

View solution

Q. What is "Sliding Scale Commission" in the context of pro rata treaty reinsurance?

View solution

Q. What is "Setoff" in the context of reinsurance?

View solution

Q. What is "Run-Off Cancellation or Termination"?

View solution

Q. What is "Risk Based Capital"?

View solution

Q. What is a "Retrocessionnaire"?

View solution

Q. What is "Retrocession" in the context of reinsurance?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Cost Accounting

Dive into the realm of Cost Accounting with our specialized category. Explore cost...

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

IC90 Human Resource Management

Prepare for success in the Insurance Institute of India (III) examination with IC90...

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...