Chapter One Knowledge Check

Chapter One Knowledge Check

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Question 1 of 2

1. Question
Draw a table with two columns, write ” Treaty Reinsurance” in the first header, and write “Facultative Reinsurance” in the second.

Now, write out the differences between treaty and facultative reinsurance.
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Question 2 of 2

2. Question
Reinsurance is insurance for insurance companies. It is a method of spreading risk for insurers. Which of the following is NOT a reason for reinsuring?
- a) To reduce the effect of a catastrophic loss
- b) To increase the insurer’s capacity to write business
- c) To promote the collection and pooling of loss information
- d) To provide stability in a fluctuating market
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