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Which statement best explains Reinsurance?

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Question ID #27211 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC 2026 Full-Length Mock Test 7 Medium

Which statement best explains Reinsurance?

Correct Answer: B. Insurance purchased by an insurer to transfer part of its own risk
Reinsurance: Insurance purchased by an insurer to transfer part of its own risk

Question: Which statement best explains Reinsurance?

A. Duty of parties to disclose material facts relevant to insurance contract

B. Insurance purchased by an insurer to transfer part of its own risk

C. Series of periodic payments often used for retirement income

D. Non-life insurance such as motor, fire, marine and health categories

Correct Answer: B. Insurance purchased by an insurer to transfer part of its own riskReinsurance: Insurance purchased by an insurer to transfer part of its own risk

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Which statement best explains Reinsurance? - MCQ Explanation

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Correct answer: B. Insurance purchased by an insurer to transfer part of its own risk