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Insurance Company XYZ Has an Agreement to Bear 15 Percent

Question 54

Multiple Choice

Insurance Company XYZ has an agreement to bear 15 percent of all losses and to retain 15 percent of all premiums in a certain type of insurance. Apparently, XYZ has reinsurance of which type?


A) formal facultative,
B) informal facultative,
C) excess of loss,
D) spread of loss,
E) quota share.

Correct Answer:

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