Miscellaneous Insurance IC-78 Exam Study Notes
Page 37 Of 46
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Quota share, surplus share and pool basis are examples of proportional reinsurance.
Excess of loss / Stop loss are non-proportional reinsurance sharing agreements.
Under the excess of loss cover it is usual to fix an upper limit to the liability of the excess of loss reinsurer.
Stop loss agreements are non-proportional reinsurance agreements.
The factors governing retention limit of the insurer include nature of the risk, location of the risk and insurers financial position.
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