Alberta General Insurance Level 1 Practice Exam

Question: 1 / 400

What is a cession in reinsurance?

A legal dispute between insurers

The amount transferred through reinsurance

A cession in reinsurance is the amount of risk and liability that is transferred from one insurance company to another through a reinsurance agreement. This amount is usually calculated as a percentage of the premiums received by the primary insurer. Option A is incorrect because a cession is not a legal dispute, but a transfer of risk. Option C is incorrect because it refers to a policy cancellation, which is not directly related to reinsurance. Option D is incorrect because it refers to regulatory compliance, which is a different aspect of the insurance industry.

Get further explanation with Examzify DeepDiveBeta

A type of policy cancellation

A regulatory compliance procedure

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy