Answer-What is the purpose of 'reinsurance'?

Home
/Questions
/Insurance and Financial Market Awareness
/Insurance Awareness
/What is the purpose of "reinsurance"? ...

Question

What is the purpose of "reinsurance"?

A To transfer some of the insurer's risk to another insurer Correct Incorrect

B To increase the premium income for the insurer Correct Incorrect

C To reduce the number of claims received by the insurer Correct Incorrect

D To avoid paying claims Correct Incorrect

E None of the above Correct Incorrect

Detailed Solution

Reinsurance is a mechanism where insurers transfer a portion of their risk to other insurers (reinsurers) to protect themselves from large or catastrophic losses.

Practice Next

More Insurance Awareness Questions

Which of the following is NOT a general exclusion under a fire insurance policy?
Insurance companies can have a exposure of to financial and insurance activities upto ____ of investment assets as per IRDAI.
The Complaint to Insurance Ombudsman must be registered within ____ year(s)
The premium of insurance of your two-wheeler depends on its IDV. What does IDV denotes?
Insurance penetration measures:
A retrocessionaire is:
What does not go on to make a healthy relationship?
The Insurance Act to govern both life insurance and non-life insurance was passed in which year?
General Insurance Corporation of India (GIC) was established in:
In case of a motor accident, the first step to be taken by the insured is to:

Hey! Ask a query

Please enter email id The email must be a valid email address.

Please enter Mobile Number Please enter valid Mobile Number

Please enter your Doubt

Thank You for posting your query. Please check your email for further guidance.

What is the purpose of "reinsurance"?

Detailed Solution

More Insurance Awareness Questions

Hey! Ask a query

Please Register/Login