What is double insurance and reinsurance

Reinsurance. Meaning. Double insurance refers to a situation in which the same risk and subject matter, is insured more than once. Reinsurance implies an arrangement, wherein the insurer transfer a part of risk, by insuring it with another insurance company.

What is meant by reinsurance and double insurance?

A policy is an insurance contract. In the case of re-insurance, the cedant is the insurer who buys the insurance and pays a premium to the reinsurer. Double insurance, on the other hand, occurs when a person or business has two insurance policies for the same item running at the same time.

What is the meaning of double insurance?

​(a) Double and co-insurance\n\n ​It is where an insured takes the same insurance policy / insures the same subject matter against the same risk with more than one insurance company. Whereas co-insurance is whereby one insurance company invites other insurers to insure with them the same property against the same risk.

Is reinsurance and double insurance same?

Issue: Reinsurance, often referred to as insurance for insurance companies, is a contract between a reinsurer and an insurer. In this contract, the insurance company—the cedent—transfers risk to the reinsurance company, and the latter assumes all or part of one or more insurance policies issued by the cedent.