< 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.

Share

Related articles

What is ‘money laundering’?

What is ‘money laundering’?

C: The process by which criminals hide the true origin and ownership of money.

Which of these methods explains how a periodic payment for a personal injury claim is typically funded?

Which of these methods explains how a periodic payment for a personal injury claim is typically funded?

C: The income may be funded directly from an insurer's reserves or by the purchase of an annuity.

Which of these pieces of consumer legislation replaced the other three pieces of legislation listed here?

Which of these pieces of consumer legislation replaced the other three pieces of legislation listed here?

C: The Consumer Rights Act 2015 became law on 1 October 2015, replacing three major pieces of consumer legislation: the Sale of Goods Act, the Unfair Terms in Consumer Contracts Regulations, and the Supply of Goods and Services Act.