General Insurance
What is the relationship between the ceding insurer and the reinsurer?
Answer and explanation
Answer: D. Reinsurance is insurance for insurers: the ceding company passes on part of the risk it has written, which protects its surplus and lets it accept larger amounts. The original policy remains the ceding insurer's obligation to the insured, who has no contract with the reinsurer.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, reinsurance
More general insurance questions
- Which need is customarily met by a government insurer rather than a private one?
- Which policy feature is designed chiefly to limit adverse selection?
- Which set names the elements of a legal contract as the outline lists them?
- Which statement best explains why a life insurance policy is legally considered a conditional contract?
- Who owns a mutual insurance company?
- Why do insurers treat losses from flooding along a single river valley as difficult to write as an insurable risk?
621 New York questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.