Page 253 - Reinsurance Management IC85

Reinsurance Management

only transacts reinsurance business. The insurer
may effect reinsurance either 'direct' with the
reinsurance insurer or through an intermediary
- a reinsurance broker. Practically all classes
of insurance can be reinsured. Virtually each
insurer world-wide reinsures a part of all
business underwritten by him. Reinsurance is
always a contract of indemnity, even in life
and personal accident insurance, because it
protects the insurer from a diminution of his
property, caused by insurance policy
obligations. Whereas insurance is a contract
between the insured and the insurer,
reinsurance is a separate contract between the
reinsurer and the insurer. Each of these
contracts depends on each other .

Q.4 a) What is proportional reinsurance ?
Explain with examples.

b) 'Risk attaching" as opposed to "Loss
occurring during" can change the

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