Answer-What is the primary function of a reinsurer?

Reinsurers provide financial protection to primary insurers by accepting a portion of their risk. This allows primary insurers to write larger policies, diversify their risk, and maintain financial stability.

Question

What is the primary function of a reinsurer?

A To share insurance risks with the primary insurer.

B To sell insurance directly to the public.

C To investigate and settle insurance claims

D To provide financial advice to insurance companies

E None of the above

Practice Next

More Insurance Awareness Questions

Which Indian port was renamed as Shyama Prasad Mukherjee Port in the year 2020 ?
Who has launched a channel-based counseling initiative titled ‘Swayam Prabha’ in the Manipuri language in November 2023?
How much Grant-in-aid was approved by the cabinet in September 2021 for the continuation of the National Export Insurance Account (NEIA) scheme?
What is the name of the one-stop mentorship platform launched by Startup India to facilitate mentorship for startups across various sectors, stages, and...
Saikhom Mirabai Chanu is an _______ .
What is the name of the Indian Air Force's aerobatic team?
Which among the following do not contribute to the green house effect?
The book ‘A Plea for Reconstruction of Indian Polity’ was written by
What is the revised NPS (National Pension System) contribution limit for employers in the private sector as a percentage of an employee’s basic salary...
Allarakha Qureshi who is popularly known as Alla Rakha, is an Indian __________ player.

What is the primary function of a reinsurer?

Solution