Page 320 - Reinsurance Management IC85

Reinsurance Management

business traded between the two companies.
u Unattainable business.

Q13. State the three main factors in defining a
catastrophic loss event under a reinsurance
contract.

Ans: u A catastrophic loss event is that caused by a
specific, sudden, unexpected, shocking and
external happening that can be located in time
and place.

u Any such event must be the proximate cause of
each and every loss to the original insureds that
the insurer is accumulating to calculate its
catastrophe claim.

u Any such event must be a peril covered by the
catastrophe treaty.

Q14. Identify four different types of risks usually
protected under a marine hull account.

Ans: Any four of the following:
u ocean going vessels;
u building risks;

Sashi Publications - www.sashipublications.com 317

ight@ The Insurance Times. 09883398055 / 0988338