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Chapter 3 Features and operation of facultative reinsurance 3/13
Self-test questions
1. What is meant by the term ‘as original’ under a facultative placement?
2. What do we mean by ‘common account’ protection?
3. Why would an insurer decide to insure on a facultative excess of loss basis?
4. What is EML?
5. State three factors that might influence the insurer’s retention on a facultative placement.
6. In what way is the relationship between the insurer’s deductible and that part of the total original premium
required by the reinsurer ‘inverse’? Chapter
You will find the answers at the back of the book Reference copy for CII Face to Face Training 3
