Question

Who is the reinsurer liable to in a reinsurance contract?

a.

The insured

b.

The insured and the reinsured

c.

The insurer

d.

The regulatory authority

Answer: (c).The insurer Explanation:In a reinsurance contract, the reinsurer is liable to the insurer. The reinsurer's liability is to the insurer alone, as the insurer is the other party to the contract. The insured, although indirectly interested in the reinsurance contract for improved security, does not have a direct interest or claim against the reinsurer.

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Q. Who is the reinsurer liable to in a reinsurance contract?

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