Multiple choice

Reinsurance is

  1. a contract of insurance that is taken up by the insured from the same insurer after the previous insurance policy lapses

  2. a contract of insurance which is taken to cover several risks on the same property such as fire insurance or burglary insurance by separate insurers on the same property

  3. a contract of insurance in which the insurer enters into a contract with another insurer to insure the whole or part of risk covered by first insurer

  4. a contract of insurance where more than one policy is taken to cover the same risk

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is correct as this is reinsurance.

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