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Commerce · Q125

Business and Commerce

Graduate and Post Graduate · Commerce · question 125

Q125

The Insurer who grants a guarantee from the direct insurer is called as _________.

A.
Direct Insurer
B.
Ceding Insurer
C.
Re-Insurer
Answer
D.
Double Insurer

Answer: Option C

Solution

Answer: Option C
Solution:
The Insurer who grants a guarantee from the direct insurer is called as Re-Insurer. A reinsurer is an insurance company that insures the risks of other insurance companies. A cedant is an insurer who transfers all or part of a risk to a reinsurer.