< Study Room | 08.05.2017

A contract of retrocession involves which parties?

A contract of retrocession involves which parties?

A The direct insured and the reinsurer

B The retrocedant and the retrocessionaire

C The cedant and the reinsurer

D The reinsured and the reinsurer


Answer:

5B: When a reinsurance company reinsures an original risk, or part thereof, which they have accepted from a direct insurer – they become known as the retrocedant in what is known as a contract of retrocession. The reinsurer who accepts the risk is called the retrocessionaire.

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