Question

What is the "Follow the Fortunes" clause in reinsurance?

a.

A clause that covers the technical risk

b.

A clause that covers the contractual risk

c.

A clause that covers the risks emanating from the insurer or the reinsurer

d.

A clause that indemnifies the reinsurer for losses incurred by the insurer

Answer: (d).A clause that indemnifies the reinsurer for losses incurred by the insurer Explanation:The "Follow the Fortunes" clause in reinsurance indemnifies the reinsurer for losses incurred by the insurer.

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Q. What is the "Follow the Fortunes" clause in reinsurance?

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