Question

Read the following features related with types of reinsurances and identify the correct type of reinsurance:

a) This type of reinsurance is also termed as stop loss reinsurance.

b) In this type agreement, the policyholder is unaware about any indemnity reinsurance transactions pertaining to original contract.

c) This type of reinsurance is related with either retaining all claims up to a particular and stated amount by the insurer or retaining each risk.

d) In this type of insurance, the policyholder is required to provide the necessary consent to releasing the ceding company.

Answer 1

a. This type of reinsurance is also termed as stop loss reinsurance - Aggregate excess of loss reinsurance

b. In this type agreement, the policyholder is unaware about any indemnity reinsurance transactions pertaining to original contract - Indeminity reinsurance agreements

c. This type of reinsurance is related with either retaining all claims up to a particular and stated amount by the insurer or retaining each risk - Excess of loss per risk reinsurance

d. In this type of insurance, the policyholder is required to provide the necessary consent to releasing the ceding company. - Novation