INS 314 Theory Questions: Surplus Treaties and Facultative Reinsurance

300 Level  Department of Insurance exam questions and detailed answers. Download the answers in document format. Correct, detailed, and straightforward answers.

Questions:

(a) What are the advantages and disadvantages of the surplus treaty?
(b) Is the surplus treaty really a proportional treaty?
(c) Under what circumstances will an insurer resort to the Facultative Method of reinsurance?

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