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Chapter 12 Marine and aviation reinsurance 12/27 Chapter

Self-test questions 12

1. Why is the cover provided by marine reinsurers not limited to risks encountered at sea?
2. What is meant by ‘freight’ in connection with a cargo account?
3. Reinsurance treaty limits need to recognise that the value of cargo can increase during a voyage. How can
this happen?
4. What is the significance of meteorology in the transaction of marine reinsurance?

5. How will the ‘actual total loss’ of an aircraft hull be settled when coverage is set up on an insured
value basis?
6. What is the effect of clause AVN 61?
7. In what way do reinsurers use a no claim bonus as a means of encouraging a ceding insurer to renew a
reinsurance commitment?

8. Why are surplus treaties reckoned to be unsuitable for aviation hull risks?
9. What justification might there be for citing an aircraft manufacturer when dependants of a victim pursue
compensation following a fatal air crash?
10. ‘Personal accident coverages are benefit policies rather than contracts of indemnity.’ Explain this
statement.
11. How can accumulations of risk arise for a satellite reinsurer during the launch phase?

You will find the answers at the back of the book Reference copy for CII Face to Face Training