Question

What is the excess of total cover (T) over the retention amount (X) referred to as?

a.

Reinsurance premium

b.

Cession amount/cover

c.

Treaty limit

d.

Underwriting reserve

Answer: (b).Cession amount/cover Explanation:The excess of total cover (T) over the retention amount (X) is referred to as cession amount/cover in reinsurance terminology.

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Q. What is the excess of total cover (T) over the retention amount (X) referred to as?

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