Question
a.
It pays for individual risks exceeding a predetermined threshold.
b.
It pays for losses from catastrophic events occurring within a specified time period.
c.
It pays aggregate net loss over a predetermined retention for a portfolio.
d.
It caps the portfolio's loss for a given time period.
Posted under IC 92 Actuarial Aspects of Product Development
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. How does stop loss reinsurance work?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
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
Q. What is the purpose of the Insurance Regulatory and Development Authority of India (Registration and Operations of Branch Offices of Foreign Reinsurers other than Lloyd’s) (First Amendment) Regulations, 2016?
View solution
Q. According to the amended regulations, what is the minimum retention requirement for Category I foreign reinsurers maintaining a branch office in India?
View solution
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!
