The proportion of the risk which the direct insurer holds on his own account is called

Question

Question: The proportion of the risk which the direct insurer holds on his own account is called _________.

Options:

1.  Cession
2.  Retention
3.  Retrocession
4.  Line

Answer 1

2. Retention

The proportion of the risk which the direct insurer holds on his own account is called Retention.

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More information:

Insurance retention means that insured will be liable to pay claims up to a certain amount of dollars. With claims exceeding that value, the insurance company handles the claims.

It is the proportion of the risk which the direct insurer holds on his own account.