GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Treaty Reinsurance
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Facultative Reinsurance
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Catastrophe Reinsurance
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Excess of Loss Reinsurance
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Detailed explanation-1: -Excess of loss reinsurance is a form of non-proportional reinsurance. Non-proportional reinsurance is based on loss retention. With non-proportional reinsurance, the ceding company agrees to accept all losses up a predetermined level.
Detailed explanation-2: -Surplus treaty is a type of proportional or pro rata reinsurance treaty in which the ceding company determines the maximum loss that it can retain for each risk in the portfolio.
Detailed explanation-3: -The most common forms of proportional treaties include Quota Share, Surplus and Facultative Obligatory treaties. For non-proportional types, the principal types include Risk Excess of Loss, Catastrophe Excess of Loss and Aggregate Excess of Loss treaties.