Question

What does the reinsurer promise to do?

a.

Pay the full premium paid by the policyholder.

b.

Pay the proportionate amount of any claims insured under the policy.

c.

Deduct any commission from the premium paid by the policyholder.

d.

Not pay any claims insured under the policy.

Posted under IC22 Life Insurance Underwriting

Answer: (b).Pay the proportionate amount of any claims insured under the policy. Explanation:The reinsurer takes a proportion of the premium paid by the policyholder after deduction of any commission and promises to pay the proportionate amount of any claims insured under the policy.

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Q. What does the reinsurer promise to do?
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