Reinsurance Flashcards
1
Q
What is reinsurance?
A
A contract of reinsurance is one by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance.
2
Q
What is the rule regarding communication of representation and the interest of the original insured?
A
If an insurer obtains reinsurance, he must communicate all the representation of the original insured, and also all the knowledge and information he possess which are material to the risk.
The original insured has no interest in a contract of reinsurance.
