Question

What is the purpose of a reinsurance contract?

a.

To indemnify the reinsurer for losses occurring on its insurance policies

b.

To indemnify the insured for losses occurring on its insurance policies

c.

To indemnify the insurer for losses occurring on its insurance policies covered by the reinsurance contract

d.

To indemnify the reinsurer for losses occurring on its reinsurance policies

Posted under IC85 Reinsurance Management

Answer: (c).To indemnify the insurer for losses occurring on its insurance policies covered by the reinsurance contract Explanation:Under a reinsurance contract, an insurer is indemnified for losses occurring on its insurance policies covered by the reinsurance contract.

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