Question

Who is responsible for paying the claim if the reinsurer fails to pay?

a.

The policyholder.

b.

The reinsurer.

c.

The direct insurer.

d.

The retrocessionaire.

Posted under IC22 Life Insurance Underwriting

Answer: (c).The direct insurer. Explanation:The contract of the policyholder is with the direct insurer. If reinsurers fail to pay a claim for any reason, the liability for full payment of the claim rests with the direct insurer.

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Q. Who is responsible for paying the claim if the reinsurer fails to pay?
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