1). What is Reinsurance?
Answer: In effect, insurance that an insurance company buys for its own protection. The risk of loss is
spread so a disproportionately large loss under a single policy doesn’t fall on one company. Reinsurance
enables an insurance company to expand its expanding volume; secure catastrophe protection against
shock losses; and withdraw a specified time period.
2). What is Accidental insurance
Answer: Accident insurance helps you pay for the medical and out-of-pocket costs that you may incur
after an accidental injury. This includes emergency treatment, hospital stays, and medical exams, and
other expenses you may face, such as transportation and lodging needs.
3). What is Double insurance
Answer: Situation in which the same risk is insured by two overlapping but independent insurance
policies. It is lawful to obtain double insurance, and the insured can make claim to both insurers in the
event of a loss because both are liable under their respective polices. The insured, however, cannot
profit (recover more than the loss suffered) from this arrangement because the insurers are law bound
only to share the actual loss in the same proportion they share the total premium. Also called dual
insurance.
Answer: In effect, insurance that an insurance company buys for its own protection. The risk of loss is
spread so a disproportionately large loss under a single policy doesn’t fall on one company. Reinsurance
enables an insurance company to expand its expanding volume; secure catastrophe protection against
shock losses; and withdraw a specified time period.
2). What is Accidental insurance
Answer: Accident insurance helps you pay for the medical and out-of-pocket costs that you may incur
after an accidental injury. This includes emergency treatment, hospital stays, and medical exams, and
other expenses you may face, such as transportation and lodging needs.
3). What is Double insurance
Answer: Situation in which the same risk is insured by two overlapping but independent insurance
policies. It is lawful to obtain double insurance, and the insured can make claim to both insurers in the
event of a loss because both are liable under their respective polices. The insured, however, cannot
profit (recover more than the loss suffered) from this arrangement because the insurers are law bound
only to share the actual loss in the same proportion they share the total premium. Also called dual
insurance.
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