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    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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