Page 311 - Reinsurance Management IC85

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Arbitration
This clause provides for any dispute to be decided
by arbitration rather than through the courts.

Exclusions
These clauses will vary depending upon the business
covered, but will normally relate to Territory, Peril/
class or War and Nuclear risk.

Q3. Name and briefly describe the three main types of
index (stability) clause.
u Standard - Calculation is based purely on the
actual movement in the index. (Fully indexed).
u Severe inflation - No calculation will be done
until the overall inflation has reached a set level.
A franchise is another method of setting the
level.
u Non-standard - Fixed or scale amount applies.

Q4. Briefly describe the difference between co-
insurance and reinsurance. Give one reason

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