Jonathan Purchased a Homeowners Policy from Alpha Insurance Company

question 10

Multiple Choice

Jonathan purchased a homeowners policy from Alpha Insurance Company.As Alpha was concerned about a high level of homeowners claims,it purchased excess-of-loss reinsurance with Beta Reinsurance.Beta agreed to pay all homeowners claims in excess of $10 million.Which of the following statements is true?

• A)If Jonathan has a claim,Beta will adjust the claim.
• B)Beta receives a fixed percentage of the homeowners premiums written by Alpha.
• C)If any claims occur,Beta must pay a portion of each claim.
• D)If Alpha's loss experience is favorable,Beta will not have to pay any losses.

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Definitions:

Anterograde Amnesia

A condition in which the ability to form new memories following the onset of amnesia is impaired or lost, while long-term memories from before the amnesia remain accessible.

Head Injury

Physical trauma to the head leading to brain damage, which can affect a person's cognitive functions, physical abilities, or emotional behavior.

Hippocampal Region

A complex brain structure embedded deep into temporal lobe, playing a major role in learning and memory.

Long-term Memories

Memories stored within the brain that can last from days to an entire lifetime, encompassing personal experiences, facts, and concepts.