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provision, common in proportional contracts,
which allows a reinsured company to make
claim and receive immediate payment for a
large loss without waiting for the usual periodic
payment procedures to occur.

Usually the Insurance companies under a treaty
make payment periodically as agreed between
them. However under a cash call an immediate
payment is made to a company irrespective of
waiting for the cycle. This is usually done in case
of large losses.

Q.2 Distinguish between :-
a) Pure Burning cost and Loaded Burning
Cost Pure Burning Cost.
b) Writtenpremium and Earned premium.
c) Minimum and Deposit Premium
d) Losses occurring and Risk attaching
basis

Ans: a) This was demonstrated in the example in 78
above.

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