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CMFASPrepStudyingRES5
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Financial advisory
RES5Financial Advisory Services✓Which of the following correctly matches the arrangement to its description?
Surplus is correctly described: a proportional treaty in which the insurer retains a chosen line and cedes only the surplus above it. A is wrong (that describes excess of loss); B confuses facultative with treaty; D wrongly describes stop loss (which is non-proportional and reacts to the aggregate loss ratio).
Watch for swapped definitions — quota share/surplus are proportional; excess of loss/stop loss are non-proportional.
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