Actuarial Notes

CAS Exam 7 Spring 2012, Question 20

Study guide: Exam 9

Part a (1.5 points)

Describe three reasons for an insurer to purchase reinsurance.

Part b (1.5 points)

For each reason given in part a. above, explain whether proportional or non-proportional reinsurance would best satisfy that reason for purchasing reinsurance.

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