Page 34 - Reinsurance Management IC85
P. 34
Reinsurance Management
Q. a. State where the Excess of loss
reinsurance is useful.
b. Explain the meaning of "losses
occurring basis" and "Policy attaching
basis" in excess of loss reinsurances.
a. Excess of loss reinsurance is particularly useful
i. where extended coverage is given in the
shape of earthquake, storm, hurricane, flood,
etc.,
ii. where there is a possibility of conflagration
e.g., dock areas, godown areas etc.,
iii. in personal accident insurance where a
number of persons may be killed or injured
in the same accident.
iv. in legal liabilities, and
iv. in marine cargo insurance, where strict
control of accumulations may not be
possible.
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