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".
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".
