Question

What is the difference between an insurance contract and a reinsurance agreement?

a.

An insurance contract is between an insurer and a client, while a reinsurance agreement is between an insurer and a reinsurer.

b.

An insurance contract is between a reinsurer and a client, while a reinsurance agreement is between an insurer and a reinsurer.

c.

The financial obligation of the insurance contract rests with the reinsurer, while the financial obligation of the reinsurance agreement rests with the insurer.

d.

The claim payment is made by the reinsurer in an insurance contract, while the claim payment is made by the direct insurance company in a reinsurance agreement.

Posted under IC22 Life Insurance Underwriting

Answer: (a).An insurance contract is between an insurer and a client, while a reinsurance agreement is between an insurer and a reinsurer. Explanation:The difference between an insurance contract and a reinsurance agreement is that an insurance contract is between an insurer and a client, while a reinsurance agreement is between an insurer and a reinsurer.

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Q. What is the difference between an insurance contract and a reinsurance agreement?
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