Does anyone have a good example showing how you'd calculate the rate on line for a non-proportional reinsurance policy? There is a glossary definition of rate on line but it doesn't really show how its calculated. It just says that its the 'total premium charged (ignoring reinstatement premiums) divided by the width of the layer covered'. Would be good to see an example or a past question showing how this works in practice....
Did a bit of further digging myself and found an old exam question that tests this. It's Subject 303 - April 2001 - Question 3
