300 Level Department of Insurance exam questions and detailed answers. Download the answers in document format. Correct, detailed, and straightforward answers.
Questions:
(i) What is Reinsurance, of what benefit is it to insurer.
(ii) Does a policy holder drive any benefit from the insurers reinsurance arrangement.
(iii) Reinsurance has a net retention on a fire of #50,000 and has arranged a first surplus treaty of 8 lines and a second surplus treaty of 4 lines. The insurer is offered a risk of total value of #750,000 and wishes to accept the whole of the risk.
