Question

What is Stop Loss reinsurance?

a.

Reinsurance where the reinsurer pays any loss on an individual risk below a predetermined retention

b.

Reinsurance where the reinsurer pays for losses from specific catastrophic events

c.

Reinsurance where the reinsurer pays the aggregate net loss over a predetermined retention for a portfolio

d.

Reinsurance where the reinsurer pays for losses from any one occurrence of an event exceeding a predetermined retention

Answer: (c).Reinsurance where the reinsurer pays the aggregate net loss over a predetermined retention for a portfolio Explanation:Stop Loss reinsurance involves the reinsurer paying the aggregate net loss over a predetermined retention for a portfolio over a given time period.

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Q. What is Stop Loss reinsurance?

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