Mr. X obtains life insurance from Entity A (an insurance company). Entity A cedes 40% of the insurance risk in the insurance contract with Mr. X to Entity B, another insurance company. 1. The contract...

Mr. X obtains life insurance from Entity A (an insurance company). Entity A cedes 40% of the insurance risk in the insurance contract with Mr. X to Entity B, another insurance company.

1. The contract between Entity A and Entity B is a:

a.direct insurance contract.

b.indirect insurance contract.

c.reinsurance contract.

d.retrocession.

2. The 40% insurance risk transferred to Entity B is called the

a.cession.

b.retention limit.

c.net retention.

d.session road.

Jun 08, 2022

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Mr. X obtains life insurance from Entity A (an insurance company). Entity A cedes 40% of the insurance risk in the insurance contract with Mr. X to Entity B, another insurance company. 1. The contract...

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