Question

What is the function of a "Binder" in reinsurance?

a.

To negotiate contracts of reinsurance on behalf of the reinsured

b.

To calculate maximum limit of liability

c.

To provide a detailed report of insurance premiums and losses

d.

To record reinsurance arrangements pending the issuance of a formal contract

Posted under IC85 Reinsurance Management

Answer: (d).To record reinsurance arrangements pending the issuance of a formal contract Explanation:A "Binder" in reinsurance serves as a record of reinsurance arrangements that are pending the issuance of a formal reinsurance contract, which eventually replaces the binder.

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Q. What is the function of a "Binder" in reinsurance?
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