Question

What is the consideration for a reinsurance contract?

a.

Reinsurance premium paid by the reinsured

b.

Premium paid by the insured

c.

Commission paid by the reinsured

d.

Fee paid by the reinsurer

Answer: (a).Reinsurance premium paid by the reinsured Explanation:The consideration for a reinsurance contract is the reinsurance premium paid by the reinsured to the reinsurer. This premium represents the cost of transferring a portion of the risk from the reinsured to the reinsurer. The reinsurance premium may be a share of the original premium, subject to deductions such as commissions, or it may be agreed upon at the time of contract formation.

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Q. What is the consideration for a reinsurance contract?

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