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Firefly Industries purchases an insurance policy with a $25 million limit from XYZ Insure Co. XYZ Insure Co. then cedes $10 million of that risk
Firefly Industries purchases an insurance policy with a $25 million limit from XYZ Insure Co. XYZ Insure Co. then cedes $10 million of that risk to ROFL Reinsurance Corp. In general, if Firefly Industries experiences a $25 million loss, will Firefly collect the $10 million directly from ROFL Reinsurance Corp.?
Yes - Firefly will need to collect the $10 million directly from ROFL Reinsurance | ||
No - Firefly will not collect the $10 million directly from ROFL Reinsurance |
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