SP8 September 2019 Q7(ii)

For the 2nd 2017 claim, the claim amount is £900k and the inflated claim amount is £1.04m. Why is there 0 reinsurance recovery instead of a £40k recovery, since the deductible is £1m?

 

Hi Asmita

The question reads there are no reinstatements. The first claim exhausts the 500k limit. The second claim is therefore not covered.

 

Thanks for your reply. I managed to completely miss the impact of that.

 

Hi,
If the 2nd 2017 claim occurred in 2018. Would the recovery be £40k?

Thanks