When non-proportional reinsurance is used, the amount for which the reinsurer is liable is not fixed at the time of the cession. Rather, the amount of reinsurance benefit is dependent on the amount of claims incurred during the contrat period.

a) True

b) False

2) Match items with its counterpart in the response.

Press space or enter to grab loss amount

the ?_______ is the important figure for proportional insurance

It is the ?_______ that is of paramount importance for nonproportional covers.

loss amount

sum insured

3) Apex Health Insurance has a retention limit of $100,000 for a single policy. Apex Health enters into an excess-of-loss per risk treaty with Geneva Re. Geneva Re agrees to pay all losses exceeding $ 100,000 but only to a maximum of $ 1 million of the sum insured. If Apex Health has $600,000 loss, how much Geneva Re has to pay? (use a decimal number, rounded to the nearest 100th, without $ sign. For example, 123456.78)

__________