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Which of the Following Statements About Reinsurance Is True

Question 1

Multiple Choice

Which of the following statements about reinsurance is true?


A) A reinsurer may not purchase reinsurance.
B) The reinsurer is responsible for providing claims services to the insured after a loss occurs.
C) The amount of insurance transferred to a reinsurer is called the net retention.
D) The insurer transferring business to a reinsurer is called the ceding company.

Correct Answer:

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