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Re-insurance & Double Insurance in Business: Definition & Uses

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What is the main benefit of reinsurance?

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1. What happens if a person has two insurance policies for a car but the wording of the clauses about double insurance is unclear?

2. Who is the cedant?

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About This Quiz & Worksheet

Take the short quiz provided with this worksheet to assess your understanding of double insurance and re-insurance. You'll be asked about the benefits of re-insurance and who a cedant is.

Quiz & Worksheet Goals

Our quiz tests your ability to:

  • Identify the main benefit of re-insurance
  • Explain what happens if a person has two car insurance policies but the wording about double insurance is unclear
  • Define who the cedant is
  • Describe the insurance concept illustrated by the fact that you will not receive compensation to buy a newer, more expensive car if you have an accident in an old car
  • Name the types of events that caused insurance companies to start re-insuring

Skills Practiced

  • Information recall - access the knowledge you've gained regarding who the cedant is
  • Making connections - use understanding of the concept of the main benefit of re-insurance
  • Knowledge application - use your knowledge to answer questions about what happens when the wording about double insurance is unclear when a person has two insurance policies

Additional Learning

If you'd like more information about this topic, take a look at our lesson called Re-insurance & Double Insurance in Business: Definition & Uses. In addition to reviewing the subjects on this quiz, you'll also learn how to:

  • Describe the role of insurance companies
  • Define premium as its used in insurance and understand how insurance companies determine this fee
  • Recall when re-insurance got started
  • Recognize what an insurance contract is called
  • Explain what clauses are
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