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Q3. Briefly differentiate any four of the
following:-
a) Gross Line and Net Line.
b) Written Premium and Earned Premium.
c) Ground-up Loss and Ultimate Net Loss.
d) Set-off clause and offset clause.
e) Reciprocal and Non-Reciprocal
Treaties.
f) Hard Market and Soft Market.

Ans: a) Quota share treaty limit = Rs. 100,000
Ceding company retention = Rs.10,000

Surplus treaty of 9lines
= 9 x 10,000 (for net lines)
= 9 x 100,000 (for gross lines)

Gross Line Net Line
100,000 10,000
100,000 10,000
100,000 10,000
100,000 10,000
100,000 10,000

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