Question

What does the term "cede" refer to in the context of reinsurance?

a.

Passing on financial interests to reinsurers

b.

Cancelling an insurance policy

c.

Increasing the liability of insurance policies

d.

Reducing the reinsurer's participation

Posted under IC85 Reinsurance Management

Answer: (a).Passing on financial interests to reinsurers Explanation:Cede" refers to the decision of the reinsured to pass on to a reinsurer all or part of their financial interests with the objective of reducing possible liability from insurance policies.

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Q. What does the term "cede" refer to in the context of reinsurance?
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