Pro-rata reinsurance:

Pro-rata reinsurance:


A) commits the reinsurer to pay part of a claim, but only after the primary insurer's coverage has been completely exhausted

B) is distinguished by very high retention amounts

C) means losses, premiums and expenses are divided proportionately by the primary insurer and the reinsurer

D) is only sold by alien reinsurers, and then only at very high rates



Answer: C

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