Influence Insurance Co. is interested in purchasing reinsurance which will allow them to keep their overall...

Influence Insurance Co. is interested in purchasing reinsurance which will allow them to keep their overall loss ratio for 2020 below 110%. Given this information, which type of reinsurance would BEST address this objective? aggregate excess of loss per occurrence / catastrophe excess of loss predetermined maximum excess of loss per risk / per policy excess of loss

Solutions

Expert Solution

Excess of loss reinsurance is a type of reinsurance in which the reinsurer indemnifies–or compensates–the ceding company for losses that exceed a specified limit.

Hence, option (b) is correct

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

You are the actuary in charge of purchasing a reinsurance contract for your insurance company. You...

You are the actuary in charge of purchasing a reinsurance contract for your insurance company. You have determined that the losses that you want reinsured follow a uniform distribution on the interval [1000, 2000]. You have a choice of two reinsurance contracts for these losses. The first contract will pay 90% of the loss, while the second contract will pay up to a maximum limit, where the limit is set so that the expected payment for both contracts are the...

Pro Physical Therapy is considering purchasing a new machine that will allow them to do preliminary...

Pro Physical Therapy is considering purchasing a new machine that will allow them to do preliminary MRIs for their patients. This project will require an initial outlay of $78,635. The machine will have an expected life of 5 years and will generate additional cash flows to the company as a whole of $21,500 at the end of each year over its 5 year life. In addition to the $21,500 cash flow from operations, during the 5th and final year there...

How does the type of insurance sold affect the need for reinsurance? Which types of insurers...

How does the type of insurance sold affect the need for reinsurance? Which types of insurers are more likely to need reinsurance?

Does Tesla’s insurance program keep customers in the “ecosystem” and make them more likely to buy...

Does Tesla’s insurance program keep customers in the “ecosystem” and make them more likely to buy products from the brand in the future? Explain why.

Automobiles are private property, as are the gasoline and maintenance services which keep them rolling. People...

Automobiles are private property, as are the gasoline and maintenance services which keep them rolling. People rationally buy and sell such assets. But operating a car creates pollutants which are emptied into the air--and air is not privately owned. Small wonder that we accept the gains of automobile transportation but ignore the pollution costs. We weigh the costs of the car, the gas and the maintenance against their benefit, but we do not have to buy the air, so we...

What are some ways in which employers can keep the costs of providing medical insurance for...

What are some ways in which employers can keep the costs of providing medical insurance for employees down without eliminating this benefit?

Kathleen Ferrero is interested in purchasing the ordinary shares of Vespertine Pty Ltd which are currently...

Kathleen Ferrero is interested in purchasing the ordinary shares of Vespertine Pty Ltd which are currently priced at $39.96. The company expects to pay a dividend of $2.58 next year and expects to grow at a constant rate of 8 per cent. a What should the market value of the share be if the required rate of return is 14 per cent? b Is this a good buy? Why or why not?

in which level of maslow's hierarchy of needs would a consumer consider purchasing flood insurance?

A finance company issues commercial paper to an insurance company, which pays for them with the...

A finance company issues commercial paper to an insurance company, which pays for them with the funds raised by issuing bonds to Mrs Jones. The finance company then buys shares issued by Telstra for the funding of its new tower. Who provides funds to Telstra? A. Mrs Jones B. The finance company C. Telstra D. The insurance company

which of the following is common to all investments? a. Government insurance backs them b. the...

which of the following is common to all investments? a. Government insurance backs them b. the investment pays interest c. some price must be paid to acquire them d. owners are guaranteed future payments

Subjects