Question

What is the difference between "reinsurance" and

Q: Answer-What is the difference between 'reinsurance' and 'co-insurance'?

Reinsurance involves risk-sharing between insurers, while co-insurance involves risk-sharing between multiple insurers, to distribute large risks that are beyond the capacity of a single insurer.

"co-insurance"?

A Reinsurance is a risk-sharing agreement between insurers, while co-insurance is a risk-sharing agreement where multiple insurers jointly share the risk of insuring a policyholder.

B Reinsurance applies to life insurance, while co-insurance applies to property insurance.

C Reinsurance is mandatory, while co-insurance is optional.

D Reinsurance is used to increase coverage, while co-insurance is used to reduce premiums.

E None of the above

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What is the difference between "reinsurance" and

Solution