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Reinsurance: Functions & Types

Instructions:

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

question 1 of 3

Reinsurance is often called ''insurance for _____''

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1. There are two main reasons why an insurance company may want reinsurance coverage. These reasons are _____

2. A reinsurer decided to pay the claims of an insurance company if they exceed $500M. What type of reinsurance is this?

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About This Quiz & Worksheet

The concept of reinsurance and its different forms can be found in this combination of a quiz and worksheet. Questions ask you about another term for reinsurance as well as the type of reinsurance likely to be used to limit claims expenses.

Quiz & Worksheet Goals

The questions of this quiz focus on the following topics in order to find out how much you know from the lesson:

  • Two main reasons why an insurance company would seek reinsurance
  • Paying the claims of a company that would exceed a certain amount
  • Sharing the cost of claims by retaining a percentage
  • Entering into insurance to limit claims expenses to a certain number

Skills Practiced

  • Information recall - remember what you have learned about reasons why a company would seek reinsurance
  • Defining key concepts - ensure that you can name the type of reinsurance involving shared cost of claims
  • Knowledge application - use what you know to answer questions about limiting claims to a certain dollar amount

Additional Learning

For more review on the subject, go to the lesson with the title Reinsurance: Functions & Types. Using this, you can dig into the topics listed below:

  • Comparing the two types of reinsurance
  • Real world examples of reinsurance
  • Recording expenses in insurance companies
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