Alberta General Insurance Level 1 Practice Exam

Non-Proportional Reinsurance, also known as Excess of Loss Reinsurance, involves sharing losses above a certain amount, known as the "excess amount". This type of reinsurance is not limited to a specific portion of the ceding company's overall risk, unlike Proportional Reinsurance. Treaty Reinsurance is a type of reinsurance in which the ceding company agrees to transfer a predetermined portion of their risk to the reinsurer, while Facultative Reinsurance involves the reinsurer evaluating and choosing which specific risks they want to cover from the ceding company rather than covering all potential risks like Treaty Reinsurance does. Therefore, B is the correct answer.