Hi there,
I don't quite get the surplus reinsurance examples given in the April 2005
CA12 Q1 question.
I don't get the bolded example? What's the difference between sum insured
and claim? Aren't they the same? And how was the answer derived?
Another thing is Acted's answer to the same question in the Revision booklet.
It uses the method of getting the ratio of retention level to the max cover
level and then applying it to individual claims to obtain the retained and
ceded levels? Why the different method from the one above?
By the way , are we expected to have such deep knowledge of surplus reinsurance? Thanks!
Last edited by a moderator: Mar 28, 2009