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Self-test questions
1. In what ways are excess of loss treaties limited ‘horizontally’ and ‘vertically’?
2. What type of proportional treaty is unsuitable where the original insurance provides unlimited liability cover
for third-party personal injury?
3. State two advantages of combining employers’ liability and public liability business in one treaty.
4. What four main considerations have to be factored into the price of reinsurance?
5. What is the significance of ‘development’ or ‘triangulation’ statistics?
6. Outline three uses of the MRC.
7. Outline three duties carried out by an insurer’s Security Committee.
You will find the answers at the back of the book
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Chapter Reference copy for CII Face to Face Training
