What is the difference between a policy and a contract of reinsurance?

A policy and a contract of reinsurance are two different types of agreements in the insurance industry. A policy is an agreement between an insurer and an insured. It sets out the terms and conditions that both parties agree to and outlines the coverage that the insurer will provide to the insured, such as the amount of money they will receive if they make a claim. A contract of reinsurance is an agreement between an insurer and another insurer. The primary insurer transfers some of the risk associated with a particular policy to the reinsurer. The reinsurer agrees to pay a portion of any claims made for that policy, or to indemnify the primary insurer for the amount of money it pays out in claims from that policy. In Washington, both types of agreements are regulated by the Office of the Insurance Commissioner. They ensure that both parties are fairly treated and that the terms of the policies and contracts are followed. They also make sure that the insurers involved in the transaction are not taking on too much risk.

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What is the difference between a policy and a contract of reinsurance?

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