Question

How is excess of loss reinsurance organized into different levels?

a.

By categorizing losses based on occurrence of events

b.

By defining different thresholds for losses

c.

By retaining a portion of losses and reinsuring the excess at different prices

d.

By setting a limit on the maximum loss payable by the reinsurer

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).By retaining a portion of losses and reinsuring the excess at different prices Explanation:Excess of loss reinsurance is organized into different levels by retaining a portion of losses and reinsuring the excess at different prices.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How is excess of loss reinsurance organized into different levels?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the purpose of catastrophe reinsurance?

View solution

Q. How does stop loss reinsurance work?

View solution

Q. What is Excess of Loss reinsurance?

View solution

Q. What is Catastrophe reinsurance?

View solution

Q. What is Stop Loss reinsurance?

View solution

Q. What is Financial reinsurance primarily used for?

View solution

Q. What are the two main types of reinsurance based on obligation?

View solution

Q. What is the primary characteristic of the surplus arrangement in reinsurance?

View solution

Q. How is the reinsurance premium calculated in the surplus arrangement?

View solution

Q. Why do insurers generally prefer the surplus method over the quota share method?

View solution

Q. What is a 'declined lives' treaty in reinsurance?

View solution

Q. What defines a declined life in reinsurance?

View solution

Q. What is the maximum percentage of the sum assured that insurers are required to reinsure with Indian reinsurers, as per IRDAI regulations?

View solution

Q. What requirement must insurers fulfill regarding reinsurance arrangements for catastrophe risks?

View solution

Q. When are insurers allowed to reinsure on quota share according to IRDAI regulations?

View solution

Q. What requirement must insurers fulfill regarding retention policy according to IRDAI regulations?

View solution

Q. What is the maximum percentage of the sum assured that an insurer shall reinsure with Indian reinsurers according to IRDAI regulations?

View solution

Q. What requirement must be met by reinsurers for insurers to place their reinsurance business outside India?

View solution

Q. According to IRDAI regulations, when can insurers reinsure on a quota share basis?

View solution

Q. Which of the following is a requirement for life insurers when placing business with reinsurers, according to IRDAI regulations?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? 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!

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Tissue Engineering

Delve into the cutting-edge field of Tissue Engineering with our specialized...

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

DC Machines

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

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...