Insurance Awareness - Reinsurance
Which of the following best explains the reinsurer’s role in facultative reinsurance?
Which of the following best explains the reinsurer’s role in facultative reinsurance?
easy Q2 of 15
Step-by-Step Solution
Step 1: Identify reinsurer’s discretion in facultative reinsurance
In facultative reinsurance, the reinsurer has the option to accept or reject each individual risk.Final Answer:
Reinsurer evaluates and decides on each risk individually → Option CQuick Check:
Reinsurer evaluates and decides = correct choice ✅
Quick Trick: Facultative = reinsurer’s choice on each risk.
Common Mistakes:
MISTAKES- Assuming reinsurer must accept all risks or only life insurance risks.
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