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.
5B: When a reinsurance company reinsures an original risk, or part thereof, which they have accepted from a direct insurer – they become known as the retrocedant in what is known as a contract of retrocession. The reinsurer who accepts the risk is called the retrocessionaire.
D. In its widest sense, telematics is a term used to describe the exchange of data, potentially over long distances, across a wireless communications network in real time.
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.