Author Question: Which of the following statements about reinsurance is true? A) A reinsurer may not purchase ... (Read 75 times)

Themember4 · **on:** Jul 11, 2018

Which of the following statements about reinsurance is true?

A) A reinsurer may not purchase reinsurance.
B) The reinsurer is the first insurer that provides claims services to the insured after a loss occurs.
C) The amount of insurance transferred to a reinsurer is called the net retention.
D) The insurer transferring business to a reinsurer is called the ceding company.

Question 2

Factors that may result in more restrictive underwriting decisions include which of the following? I. Inadequate rates. II. The unavailability of reinsurance at favorable terms.

A) I only
B) II only
C) both I and II
D) neither I nor II