When a Reinsurer Cedes Coverage to Another Reinsurer, It Is

question 65

True/False

When a reinsurer cedes coverage to another reinsurer, it is called retrocession.

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Definitions:

Inventory Balance

The total value of all the goods and materials held by a company for resale or production purposes at the end of an accounting period.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired, reflecting its loss of value over time.

Translated Income Statement

An income statement that has been converted from one currency to another, typically involved in the financial reporting of multinational companies.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its original purchase price.