Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
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The insurer cannot retain everything on his account and needs to examine risk sharing options of coinsurance and reinsurance.
Reinsurance has two types - facultative (one off) and treaty (protfolio management)
Risk management involves 5 steps: identify, assess, evaluate, mange and transfer.
Underwriting process involves decision on risk acceptance.
An excess is another word for deductible. Many insurance policies have stated excesses or deductibles - the amount the policyholder must contribute towards a claim. This may be relatively low for a household policy e.g. a few hundreds of rupees, or could be hundreds of thousands of dollars for a large professional indemnity policy.
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