Actuarial Notes

Exam DISC-IA Practice Question 218

Study guide: Exam DISC-IA

A U.S. company's global program has a controlled master policy with a $10,000,000 limit and broad terms, and a local admitted policy in a country where its factory sits. The local policy excludes flood. A flood causes $6,000,000 of damage to the factory, a loss the master policy's terms cover. Local law allows the master policy's payment to reach the parent. How much does the master policy pay?

  • A) $0
  • B) $4,000,000
  • C) $6,000,000
  • D) $10,000,000

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