CAS Practice Exam 2026 – Complete Study Guide

Reinsurers may expressly exclude from coverage loss exposures covered by independent manuscript forms. Independent manuscript forms are tailored policy documents that are specifically created for unique exposures, situations, or risks that may not be adequately covered by standard forms or other existing policy structures. Because these forms are custom and can include unique exclusions or particular conditions, reinsurers have the discretion to evaluate whether they want to accept these risks.

Reinsurers generally prefer to rely on standardized or well-defined policy structures due to their familiarity with the risks involved and the actuarial data supporting those risks. Thus, they may opt to exclude coverage for more complex or less predictable independent manuscript forms to manage their risk exposure effectively. This approach to reinsurance helps ensure that the reinsurer can maintain a steady and manageable risk portfolio.

Understanding the nuances of coverage through different forms empowers reinsurers to customize their agreements and exclusions based on their risk appetite and underwriting philosophy, particularly regarding unique or specialized risks presented by independent manuscript forms.