Question

Which of the following statements about the reinsurer is correct?

a.

The reinsurer only shares the “insurance fate” in other words; he is not affected by the insurer’s “commercial fate”.

b.

The reinsurer is responsible for handling claims made by policyholders.

c.

The reinsurer only enters into reinsurance contracts with policyholders.

d.

The reinsurer determines the premiums to be paid by policyholders.

Posted under IC85 Reinsurance Management

Answer: (a).The reinsurer only shares the “insurance fate” in other words; he is not affected by the insurer’s “commercial fate”. Explanation:The reinsurer only shares the “insurance fate” with the insurer, meaning that he is only responsible for covering losses related to the insured risk, and not losses related to the insurer's overall business.

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Q. Which of the following statements about the reinsurer is correct?
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