New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following statements is false?

    A Coinsurance is the sharing of risks between insurers Correct Answer Incorrect Answer
    B The insurer has a contractual relationship with the reinsurer Correct Answer Incorrect Answer
    C The re-insurer is the insurer of the insurer Correct Answer Incorrect Answer
    D The insured has a contractual relationship with the reinsurer Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The insured has a contractual relationship with the primary insurer, not with the reinsurer. The reinsurance agreement is between the primary insurer and the reinsurer.

    Practice Next