Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
Page 10 Of 45
Go to:
Insurance spreads the Losses of Individuals, over a Group of Individuals, who are exposed to Similar Risk, thereby, making the Process, Fair and Equitable, for All.
Reinsurance - Transfer of risk from one insurance company to another is called reinsurance, To ensure that they can fulfill their promise to pay claims even during catastrophic events, insurers transfer a part of their risk to another insurer.
Reinsurance - In India, insurers are to compulsorily cede 10% of their premium to the national reinsurer; the General Insurance Corporation (Reinsurance). General Insurance Corporation of India is the National Re-Insurer.
The purpose of insurance is to: - Bring people who are exposed to similar risks together (sharing the same risk), Collect premium from the individuals, Pay compensation, called claims, is the event of loss
Revenue comes from : - Premium collected, Income from interest and dividends on investments
MODELEXAM® 
www.realsoftinfoplan.com