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11/40 M97/February 2018 Reinsurance

Self-test questions

1. How is a liability risk under a ‘casualty’ account distinct from a ‘property’ risk?
2. What is the difference between motor liability and passenger accident cover within a motor account?
3. How can accumulations of risk arise for a motor treaty reinsurer?
4. Why is facultative reinsurance a feature of personal accident business?
5. What is the effect of EL insurance being written on a loss occurring basis?

6. What is the significance of ‘strict liability’ in respect of workers’ compensation business?
7. Why would a reinsurer of a public liability account want to know if the ceding insurer accepts co-insured
business?
8. Why is professional indemnity cover usually written on a claims made basis?
9. Which class of reinsurance tends to be most suitable for fidelity guarantee business, and why?
10. Why might bloodstock covers be extended to include public liability exposures?

11. Why is there not a need for breakdown cover as soon as a product is purchased?
12. What is the purpose of casualty clash excess of loss reinsurance?
You will find the answers at the back of the book Reference copy for CII Face to Face Training

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