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5/26 M97/February 2018 Reinsurance

Self-test questions

1. Why are accounting procedures simpler under an excess of loss treaty, compared to a proportional treaty?
2. What is the principal difference between a ‘per risk’ and a ‘per event’ treaty?
3. What is the deductible?
4. What is an aggregate excess of loss treaty?
5. Why would an insurer buy umbrella excess of loss reinsurance?

6. In what circumstances would a reinsurer adjust a non-proportional reinsurance premium at year end?
7. How are burning costs calculated?
8. What is gross net earned premium income?
9. Why is it important to describe ‘event’ accurately?
10. Why do reinsurers impose event limits?

You will find the answers at the back of the book

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Chapter Reference copy for CII Face to Face Training