Liability Insurance Company (LIC) was approached by a regional airline to see if LIC would write the airline's liability coverage. LIC agreed to write the coverage and entered into an agreement with a reinsurer
Under the agreement, LIC retains 25 percent of the premium and pays 25 percent of the losses, and the reinsurer receives 75 percent of the premium and pays 75 percent of the losses. This reinsurance arrangement is best described as
A) excess-of-loss reinsurance.
B) surplus-share reinsurance.
C) quota-share reinsurance.
D) pool reinsurance.
Answer: C
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a. that the parties must make a new agreement discharging each other from rights and obligations under the original contract. b. that the parties must enter into a novation. c. that the parties must accept substantial performance. d. all of these.
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Fill in the blank(s) with correct word
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A. clinical trial B. launch strategy C. market test D. prototype E. marketing plan
Baby boomers typically value ambition and material comforts.
a. true b. false