Question

What is the principle on which the relationship between the insurer and reinsurer is based?

a.

Legal binding

b.

Uberrima fides

c.

Confidence

d.

Goodwill

Answer: (b).Uberrima fides Explanation:The relationship between the insurer and reinsurer is based on the principle of "Uberrima fides", i.e. utmost good faith, which extends to the underwriting of risks, the settlement of claims, and the determination of retentions and cessions.

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Q. What is the principle on which the relationship between the insurer and reinsurer is based?

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