Actuarial Notes

Exam DISC-RM Practice Question 250

Study guide: Exam DISC-RM

An insurer's property treaty excludes chemical plants. A producer submits a large chemical plant that the insurer would like to write if it can reinsure part of it. Which arrangement fits?

  • A) Adding the plant to the existing treaty, since treaties reinsure all business automatically
  • B) A quota share treaty on the insurer's whole property book
  • C) Facultative reinsurance negotiated for that plant alone
  • D) An aggregate stop loss on the insurer's property results

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