When a Primary Insurer "Cedes" Coverage to a Reinsurer, the Process

question 29

Multiple Choice

When a primary insurer "cedes" coverage to a reinsurer, the process is called:

• A) reinsurance
• B) automatic coverage
• C) retrocession
• D) cession

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Definitions:

Variable Maintenance Costs

Costs that vary in direct proportion to the usage of machinery or equipment, often related to repairs and upkeep.

Fabrication

The process of manufacturing complex items from raw materials or components, typically involving several stages of assembly.

Assembly Departments

Departments within a manufacturing facility where parts are assembled into final products.

Investment Opportunity

A potential venture, asset, or market where investing could yield profitable returns.