General Insurance
An insurer transfers part of the risk it has accepted to another insurer. What is that arrangement?
Answer and explanation
Answer: A. Reinsurance is insurance bought by an insurer, with the ceding insurer transferring risk to the assuming insurer. Coinsurance concerns sharing between insured and insurer, self-insurance means retaining rather than transferring, and subrogation is the transfer of recovery rights after a loss is paid.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, reinsurance
More general insurance questions
- Who owns a mutual insurance company?
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- Why is an insurance contract classified as a conditional contract?
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