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What is proportional reinsurance?
  • a)
    Reinsurance where the reinsurer only covers losses that exceed the insurance company's retained limit
  • b)
    Reinsurance where the reinsurer receives a prorated share of the premiums and shares a portion of the losses
  • c)
    Reinsurance where the reinsurer covers all losses that occur during the reinsurance contract period
  • d)
    Reinsurance where the reinsurer covers losses that occur outside the coverage period
Correct answer is option 'B'. Can you explain this answer?
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What is proportional reinsurance?a)Reinsurance where the reinsurer onl...
Proportional reinsurance is a type of coverage where the reinsurer receives a prorated share of the premiums of all the policies sold by the insurance company being covered. When claims are made, the reinsurer also bears a portion of the losses. The proportion of the premiums and losses shared by the reinsurer is based on an agreed percentage.
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What is proportional reinsurance?a)Reinsurance where the reinsurer only covers losses that exceed the insurance company's retained limitb)Reinsurance where the reinsurer receives a prorated share of the premiums and shares a portion of the lossesc)Reinsurance where the reinsurer covers all losses that occur during the reinsurance contract periodd)Reinsurance where the reinsurer covers losses that occur outside the coverage periodCorrect answer is option 'B'. Can you explain this answer?
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What is proportional reinsurance?a)Reinsurance where the reinsurer only covers losses that exceed the insurance company's retained limitb)Reinsurance where the reinsurer receives a prorated share of the premiums and shares a portion of the lossesc)Reinsurance where the reinsurer covers all losses that occur during the reinsurance contract periodd)Reinsurance where the reinsurer covers losses that occur outside the coverage periodCorrect answer is option 'B'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is proportional reinsurance?a)Reinsurance where the reinsurer only covers losses that exceed the insurance company's retained limitb)Reinsurance where the reinsurer receives a prorated share of the premiums and shares a portion of the lossesc)Reinsurance where the reinsurer covers all losses that occur during the reinsurance contract periodd)Reinsurance where the reinsurer covers losses that occur outside the coverage periodCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is proportional reinsurance?a)Reinsurance where the reinsurer only covers losses that exceed the insurance company's retained limitb)Reinsurance where the reinsurer receives a prorated share of the premiums and shares a portion of the lossesc)Reinsurance where the reinsurer covers all losses that occur during the reinsurance contract periodd)Reinsurance where the reinsurer covers losses that occur outside the coverage periodCorrect answer is option 'B'. Can you explain this answer?.
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