Important Points for IC 22 - Life Insurance Underwriting Exam
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Avocation of car racing carries the maximum risk of 'crashing at considerable speed'.
Avocation for flying is an example of a risk factor that is not associated with the residence of an individual.
Reinsurance is the way in which one direct insurance company (also called Ceding company) transfers (cedes) part of the risk to another life company (the reinsurer). This helps to reduce the liability of the direct insurer to a large extent.
Cedant or ceding company : is the direct insurance company that transfers the risk
Cede : (in insurance terminology) is the transfer of risk
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