Practice where an insurance company (the insurer) transfers a portion of its risks to another (the reinsurer). Legal rights of the policyholders (insureds) are in no way affected by reinsurance, and the insurer remains liable to the insureds for insurance policy benefits and claims.
Use 'reinsurance' in a Sentence
If you are working in an insurance firm and find yourself in a risky position look for another company to use their reinsurance.
Sometimes an insurance company may decide they have to much liability and may look for another company for reinsurance to lighten their load.
Since the indemnity was beginning to mount for the insurer, the company decided issue reinsurance terms to whomever wanted to help shoulder the burden; as it were, the terms they received were very favorable.
You Also Might Like...
