The proportion of the risk which the direct insurer holds on his own account refers to ___________
A)Line.
B)Retention.
C)Retrocession.
D)Ceding insurer.

Question

Quizplus · Accepted Answer

Retention refers to the portion of risk that an insurer keeps for itself instead of transferring it to a reinsurer or another party. It indicates the level of risk the insurer is willing to hold on its own account.

The Proportion of the Risk Which the Direct Insurer Holds