Part 7 consists of which two parts?

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Multiple Choice

Part 7 consists of which two parts?

Part 7 is about the two contract categories the insurer directly handles or assumes from others. Specifically, it combines direct primary contracts with contracts where the insurer is assuming risk from another insurer. A primary contract is the direct business written with policyholders, while reinsurance contracts (assumed) are those where the company takes on risk under a reinsurance agreement from another insurer. These two together form Part 7. The other options introduce elements that aren’t part of this section, such as ceded reinsurance or policy features like deductibles, which belong to different parts or topics. For example, a company could write auto policies directly to customers and also accept risk via an assumed reinsurance agreement, which fits Part 7.

Part 7 is about the two contract categories the insurer directly handles or assumes from others. Specifically, it combines direct primary contracts with contracts where the insurer is assuming risk from another insurer. A primary contract is the direct business written with policyholders, while reinsurance contracts (assumed) are those where the company takes on risk under a reinsurance agreement from another insurer. These two together form Part 7.

The other options introduce elements that aren’t part of this section, such as ceded reinsurance or policy features like deductibles, which belong to different parts or topics. For example, a company could write auto policies directly to customers and also accept risk via an assumed reinsurance agreement, which fits Part 7.

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