GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Reinsurance placed with a company not authorized in the reporting company’s state of domicile is called ____
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Underwriter
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Underwriting Risk
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Universal Life Insurance
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Unauthorized Reinsurance
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Explanation:
Detailed explanation-1: -Types of Reinsurance Reinsurance can be divided into two basic categories: treaty and facultative. Treaties are agreements that cover broad groups of policies such as all of a primary insurer’s auto business.
Detailed explanation-2: -Proportional reinsurance is based on original liability and proportional cession, whereby in the case of non-proportional reinsurance, it is the amount of loss and the cover – limited in amount – which is significant. It is also referred to as “excess of loss reinsurance”.
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