Question

What action does the re-insurer take if the insurance cover per life is below the Facultative Limit (F)?

a.

Automatically accept without any question

b.

Reject the application for reinsurance

c.

Examine and inspect the insurer's offices to assess underwriting practices

d.

Negotiate with the insurer for higher premiums

Answer: (c).Examine and inspect the insurer's offices to assess underwriting practices Explanation:If the insurance cover per life is below the Facultative Limit (F), the re-insurer retains the right to examine and inspect the insurer's offices to assess underwriting practices within the company.

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Q. What action does the re-insurer take if the insurance cover per life is below the Facultative Limit (F)?

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