Page 46 - Reinsurance Management IC85

Reinsurance Management

c. GNEPI:
Gross Net Earned Premium Income
Since the XL contracts are often on loss occurring
basis, sometimes the XL rate is agreed to be applied
on earned premium income. For example, GNEPI
may be agreed to mean 60% of premium for the
current accounting year plus 40% of the premium
for the previous accounting year.

d. Accounted for premium income:
The common method is to take written or
accounted premium income as the basis on which
XL rate is applied. This method is simple in
operation and distortions, if any, should get evened
out over a period of years.

Q. Write short notes on:
a. Stop Loss Cover
b. Reporting Excess of Loss Cover
c. Covers with aggregate deductible and
d. Top and Drop Cover

Ans: a. Stop Loss Cover:

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