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What reinsurance is defined as reinsurance excess of retention by the ceding company?
Suggested Answer: A
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15 comments · newest first
HI
Hildred
1 month ago
Got it! Non-proportional it is then.
SA
Salome
1 month ago
Exactly! Non-proportional is the right fit here.
DE
Dean
1 month ago
Proportional is more about sharing losses, not excess.
HI
Hildred
2 months ago
But what about B) Proportional? It seems relevant too.
SA
Salome
2 months ago
I agree, John. Non-proportional covers excess risk.
DE
Dean
2 months ago
I think it's A) Non-proportional. It makes sense.
JO
Josephine
2 months ago
I’m not so sure about that, could be B too.
MA
Mabel
2 months ago
Totally agree, it's A! Non-proportional is the way to go.
ME
Melda
2 months ago
Wait, is that really the definition? Sounds off.
TH
Theola
3 months ago
I thought it was B) Proportional, but I guess not!
JU
Julio
3 months ago
It's definitely A) Non-proportional.
MA
Maynard
3 months ago
Commutative and non-commutative sound familiar, but I can't quite remember how they fit into reinsurance. I think they might not be relevant here.
DA
Dallas
3 months ago
I recall a practice question that mentioned non-proportional reinsurance as a way to cover losses beyond a certain point. So, I’m leaning towards A.
NI
Nida
3 months ago
I'm not entirely sure, but I feel like proportional reinsurance is more about sharing losses in a set ratio. Maybe it's not the right answer?
BR
Brittni
4 months ago
I think this question is about the type of reinsurance that kicks in after a certain loss threshold is reached. I remember studying non-proportional reinsurance for this reason.