Module 8: Reinsurance Flashcards
1
Q
The insurer who SELLS the initial policy is called what?
A
The ceding insurer
2
Q
Insurer who ASSUMES some or all of the risk is called what?
A
the reinsurer
3
Q
What is “retrocession”?
A
When a reinsurer sells off some of its risk to another reinsurer
4
Q
Name the 2 types of reinsurance treaties
A
- Facultative
2. Treaty
5
Q
Does the doctrine of “contra proferentem” apply to reinsurance?
A
No, there are no contracts of adhesion; the contracts are largely custom-made
6
Q
When a reinsurer sells off some of its risk to another reinsurer
A
7
Q
True or False? Reinsurance litigation is rare.
A
True.
