ABC Insurance retains the first 1 million of each property damage ...

[mmm]

ABC Insurance retains the first 1 million of each property damage loss and purchases reinsurance for that part of any property loss that exceeds 1 million. The insurance for property losses above 1 million is called
 
  A) excess insurance.
  B) liability insurance.
  C) coinsurance.
  D) primary insurance.

Question 2

Which of the following statements about an excess insurance plan is true?
 
  A) The insurer does not participate in a loss until the loss exceeds the amount the firm has decided to retain.
  B) The insurer pays first up to some specified level; the insured then pays all losses exceeding the insurer's retention level.
  C) Losses in excess of a specified amount are not covered.
  D) The insured and insurer share equally in any loss that occurs.

[nathang24]

Answer to Question 1

Answer: A

Answer to Question 2

Answer: A

[mmm]

TYSM

[amit]

Gracias!