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Chapter 2 Different types of reinsurance 2/17

Question answers

2.1 Any large, complex or extra-hazardous risk could fall under this heading. Examples include large construction
projects such as dams or skyscrapers, scientific research establishments or nuclear power stations. Chapter

2.2 So that no single loss or loss event should unduly adversely affect any one insurer or reinsurer. 2
2.3 An insurance company established with the specific objective of financing risks emanating from its parent
company which owns the captive. If the captive only insures its parent and affiliates it is called a pure captive. Reference copy for CII Face to Face Training