Question

How is the risk/liability shared between the direct insurer and the reinsurer?

a.

The direct insurer takes on all the risk/liability

b.

The reinsurer takes on all the risk/liability

c.

The risk/liability is shared proportionately between the direct insurer and the reinsurer

d.

The risk/liability is shared equally between the direct insurer and the reinsurer

Posted under IC22 Life Insurance Underwriting

Answer: (c).The risk/liability is shared proportionately between the direct insurer and the reinsurer Explanation:The risk/liability is shared proportionately between the direct insurer and the reinsurer.

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Q. How is the risk/liability shared between the direct insurer and the reinsurer?
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