Exam 6C Practice Question 6
Study guide: Exam 6C
A Quebec automobile insurer writes a driver it considers a much higher risk than its rates assume. The insurer wants to keep the customer but not the underwriting result.
Which arrangement describes the plan de répartition des risques (P.R.R.) through which it can do this?
- A) The Facility Association writes the driver directly in its residual market at rates approved for that market
- B) The Société de l'assurance automobile du Québec takes over the driver's private property damage coverage
- C) The driver is placed in an uninsured automobile fund financed by a levy on all insurers in the province
- D) The insurer cedes the risk to a private reinsurer of its choice and keeps the commission it negotiates
- E) The insurer issues and services the policy itself and transfers the risk to a pool shared by the province's auto insurers
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