A

strike in the mining industry is a typical example of a … risk.

An insurer enters into

a quota share arrangement with the ceding insurer retaining 60% of any loss.

How much will the reinsurer pay if the loss amounts to R40 000 under a R80 000

policy?

Brokers …

An underwriter

is requested to underwrite a tyre manufacturing plant. The sums insured are:

Fire                        R50 000 000

Loss of

profits       R30 000 000

The

underwriter has a net line of R2 000 000 and can take an additional 50% if the

risk involves Fire and Loss of profit. The underwriter has a nine-line surplus

treaty.

Under the

above scenario …

Consideration in terms of insurance policies …

The global reinsurance market plays a vital role in supporting the South African insurance industry. How does the availability of reinsurance capacity from international reinsurers benefit South African policyholders?

Consider

a policy with a R5 000 deductible and a recapture factor of 5%. Determine the

amount that the insurer would pay for a loss of R4 500.

Wandile Manufacturing Company, which is based in Johannesburg, South Africa, is a leading producer of high-quality consumer goods, including electronics and household appliances. With a commitment to innovation and quality, Wandile has established itself as a significant player in the manufacturing sector. Because the company faces various risks, including supply chain disruptions, equipment malfunctions and market volatility, it implemented a robust risk management and insurance strategy. In line with this strategy, Wandile applied for property insurance for a newly built factory. Which of the following factors would an underwriter consider most important when assessing the risk and determining the premium for Wandile's property insurance?

Multi-peril policies …  

Zibuyile Tau, a resident of Alexandra Township in South Africa, holds a health insurance policy with a reputable insurer. The policy covers medical expenses for Zibuyile and her family. Recently, Zibuyile underwent a medical procedure and subsequently filed a claim with her insurer to seek reimbursement for covered expenses. She received medical treatment at a local hospital, which included surgery and post-operative care.  Zibuyile submitted a claim to her health insurer, detailing the medical expenses incurred during the treatment, including hospital fees, surgeon's fees, medication and other related costs. Along with the claim form, Zibuyile provided supporting documents, such as medical bills, receipts, prescriptions and the medical reports required by the insurer. Zibuyile alleged that a specific medical procedure had not been covered as promised under her health insurance policy. What is the insurer's primary responsibility in this situation?