Hi, I am using ST7 Revision Notes of Reinsurance. In the Question Analysis session, where we try to calculate recovery of each individual loss from reinsurer under XL treaty (page 74), I don't understand why we can recover 4.5m for loss 6 as we should have exhausted part of the layer from the previous losses. Thank you very much for your help.
Old past paper Is there some way one can obtain old past papers (pre-99) without purchasing revision notes?
Hi Lwang I am not sure that anyone has answered your original question regarding Sep 1995 Paper 2 Question 1. The Excess of Loss treaty of £4.5m xs £0.5m with 2 free reinstatements will apply separately for each underwriting year. Hence for the 1992 year there is a total of £13.5m of cover available for all losses in excess of £0.5m with a maximum of £4.5m iro any one loss. So we can recover £649.9k iro the 4th loss, £787.4k iro of the 5th loss and £4.5m iro the 6th loss.
