New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Contract under which the ultimate liability of the

    reinsurer is capped and on which anticipated investment income is expressly acknowledged as an underwriting component is called?
    A Finite Risk Reinsurance Correct Answer Incorrect Answer
    B Fire Insurance Correct Answer Incorrect Answer
    C Escrow Account Correct Answer Incorrect Answer
    D Earned Premium Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Finite risk insurance is the term applied within the insurance industry to describe an alternative risk transfer product that is typically a multi-year insurance contract where the insurer bears limited underwriting, credit, investment and timing risk

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