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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of a reinsurance contract?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which of the following is a type of reinsurance contract?

View solution

Q. What is facultative reinsurance?

View solution

Q. What is the definition of facultative reinsurance?

View solution

Q. Facultative reinsurance can be transacted on which basis?

View solution

Q. What is the purpose of obtaining reinsurance coverage before accepting to insure a client in facultative reinsurance?

View solution

Q. What are some strategic uses of facultative reinsurance?

View solution

Q. Why do insurers obtain reinsurance coverage before accepting to insure a client in facultative reinsurance?

View solution

Q. What is the main reason for the decline of facultative reinsurance over time?

View solution

Q. What is the advantage of using facultative reinsurance to reinsure hazardous risks not protected by treaty arrangements?

View solution

Q. What is facultative reinsurance?

View solution

Q. What is the main advantage of facultative reinsurance?

View solution

Q. What are the limitations of facultative reinsurance?

View solution

Q. What are the considerations for a single Mega Risk Facultative Reinsurance Placement?

View solution

Q. Which of the following is correct with respect to facultative reinsurance?

View solution

Q. What is treaty reinsurance?

View solution

Q. What are the two ways in which treaty reinsurance may be transacted?

View solution

Q. What is the key difference between facultative and treaty reinsurance?Why are the administrative costs lower in treaty reinsurance than in facultative reinsurance?

View solution

Q. What is the key difference between facultative and treaty reinsurance?

View solution

Q. What is a formal treaty wording?

View solution

Q. Which of the following is not a characteristic of treaty reinsurance?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

IC85 Reinsurance Management

Gear up for success in the Insurance Institute of India (III) examination with IC85...

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Mass Transfer

Delve into the science of Mass Transfer with our specialized category. Explore...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...

Environment Management

Master the art of Environment Management with our specialized category. Explore...