D
DanielZ
Member
Hi
In chapter 21, page 5, the notes give the following example:
"Another example [of changes to the business operating environment] is where a state scheme is set up with an aggregate limit beyond which claims are passed on to all authorised insurers / reinsurers operating in the relevant state or market."
Can someone please clarify what scenario this example is describing? In this scenario, does the state pay for claims up to the aggregate limit, and then are all the insurers jointly liable for claim amounts above the limit? Would there be actual policies written & premiums paid in this scenario?
Thank you
In chapter 21, page 5, the notes give the following example:
"Another example [of changes to the business operating environment] is where a state scheme is set up with an aggregate limit beyond which claims are passed on to all authorised insurers / reinsurers operating in the relevant state or market."
Can someone please clarify what scenario this example is describing? In this scenario, does the state pay for claims up to the aggregate limit, and then are all the insurers jointly liable for claim amounts above the limit? Would there be actual policies written & premiums paid in this scenario?
Thank you