Question

The consideration for the reinsurance contract is:

a.

Reinsurance premium paid by the reinsured to the reinsurer.

b.

Insurance premium paid by the policyholder to the insurer.

c.

Claims paid by the reinsurer to the reinsured.

d.

Commission received by the broker from the reinsurer.

Answer: (a).Reinsurance premium paid by the reinsured to the reinsurer. Explanation:The reinsurance contract involves the payment of a reinsurance premium from the reinsured to the reinsurer in exchange for assuming a share of the risk.

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Q. The consideration for the reinsurance contract is:

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