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.
B: Insurers apply premium rates to groups of customers, taking no account of their personal details or generally the extent to which they engage in dangerous activities.
A: Earned premium only B: All banked funds plus any payments received awaiting banking
Which of these insurances indemnifies the insured against the costs of repairing or replacing a defective product that has been supplied by the insured?
D: Product guarantee insurance pays for the cost of repairing/replacing the defective products supplied by the insured. Product recall and financial loss insurance can be arranged under a combined policy with product guarantee.