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Reinsurance
The transferring of a portion of the liability to other insurers. Example: Insurer A insures for $200,000, A insures for $100,000 and reinsures the "second" $100,000 through B insurer, The "first" $100,000 is called "primary liability."
Reinsurance
The mitigation of all or some of an insurance risk by an insurer by transferring to another insurer in return for the payment or part payment of premiums.
Reinsurance
The spreading of risk and division of client premiums among insurance companies allowing the sharing of the burden of a large risk.
Reinsurance
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