What was the earliest form of reinsurance?
A – Catastrophe excess of loss
B – Facultative
C – Quota share treaty
D – Surplus treaty
B: Facultative reinsurance. The market then developed into areas such as treaty reinsurance.
A: Reinstatement B: New for old C: Indemnity D: Replacement
B: Days of grace are not an extension of cover, but rather a specified number of days (15 or 30 days) into the next period of insurance when the insured can still renew cover.
A: At review premiums can rise, fall or stay the same.