The insurer assuming the risk in a reinsurance arrangement is called the

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Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

The insurer assuming the risk in a reinsurance arrangement is called the

Explanation:
In reinsurance, the insurer that accepts the risk from another insurer is the reinsurer. The reinsurer takes on the risk under a reinsurance agreement, agreeing to pay covered claims and share losses according to the terms, which helps the ceding insurer manage exposure and maintain solvency. An underwriter is the person who evaluates and price risks before acceptance, not the entity that assumes the reinsured risk. An assignee simply receives contractual rights, not necessarily the risk transfer. A broker arranges the deal between insurers but does not assume the risk themselves.

In reinsurance, the insurer that accepts the risk from another insurer is the reinsurer. The reinsurer takes on the risk under a reinsurance agreement, agreeing to pay covered claims and share losses according to the terms, which helps the ceding insurer manage exposure and maintain solvency. An underwriter is the person who evaluates and price risks before acceptance, not the entity that assumes the reinsured risk. An assignee simply receives contractual rights, not necessarily the risk transfer. A broker arranges the deal between insurers but does not assume the risk themselves.

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