Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

EML stands for ?estimated maximum loss?.
Based on risk profile data and other underwriting information an estimate of the CAT ? PML for the treaty is arrived at. In hard market conditions, reinsurers insist on additional control measures / restrictions in the form of: Aggregate Cession Limit, Per Event Loss Limit or Annual Loss Limit.
The classic definition of proximate cause is: 'the active efficient cause, that sets in motion a train of events, which brings about a result, without the intervention of any force started and working actively from a new and independent source.'
A warranty is an undertaking by the insured that some particular thing shall or shall not be done or that some condition shall be fulfilled or whereby he affirms or negatives the existence of a particular state of facts
Representations are statements made orally or in writing before or at the time of concluding the contract. A representation must be substantially true and should be made in utmost good faith in insurance contracts.

Important Points for IC 57 - Fire and Consequential Loss Insurance Exam