Identify the arrangement by which an insurance company transfers all or a portion of its risk under a contract (or contracts) of insurance to another company.

Question

Quizplus · Accepted Answer

Reinsurance is the process by which an insurance company (the ceding company) transfers part or all of the risk it has assumed from its policyholders to another insurer (the reinsurer), to reduce its risk exposure.

Identify the Arrangement by Which an Insurance Company Transfers All