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Question: When a company reinsures its liability with another, then it ________ business.

Options:

  1.  Cession
  2.  Cedes
  3.  Ceding
  4.  None

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1 Answer

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Best answer

2. Cedes

When a company reinsures its liability with another, then it Cedes business.


More information:

A ceding company is an insurance company that that transfers the insurance portfolio to a reinsurer.

When a company reinsures its liability with another company, a part or all of its liability is passed to a reinsurance company.

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