Question

What is the role of the reinsurer in reinsurance?

a.

To assume the role of the insurer

b.

To transfer part of the risk to the ceding company

c.

To earn commission for passing on the business

d.

To protect its balance sheet

Posted under IC22 Life Insurance Underwriting

Answer: (a).To assume the role of the insurer Explanation:In reinsurance, the reinsurer assumes the role of the insurer and accepts the transfer of risk from the ceding company.

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