All the following statements regarding reinsurance are correct EXCEPT: A. The insurer accepting some of the risk being transferred from another insurer is known as the reinsuring company.

B. The insurer seeking to transfer some of its risk to another insurer is known as the ceding company.

C. Reinsurance is a risk-sharing process used by insurance companies.

D. Claims are paid to the policyowner separately by each insurer participating in the reinsurance agreement

D. Claims are paid to the policyowner separately by each insurer participating in the reinsurance agreement.

Explanation:

Option D is correct because it does not apply to reinsurance.

In reinsurance, the company known as the insurer accepting part of the risk that are being transferred from another insurer is known as the reinsuring company.

Also, the insurer that is seeking to transfer part of its risk to another insurer is called the ceding company. Reinsurance is a risk sharing process between the insuring companies. Insurer that transfers part of his risk to another insurer does that in order to limit their total loss which they might incur in the case of any disaster.

if interdependence implies a two-way dependence, and if each partner is equally dependent on the other for success, then there is an equal commitment to the making the partnership successful. the advantage is sustainability of the relationship, the disadvantage is that decisions are "democratic" and therefore may take longer to reach and more likely to be a compromise (which is not always the best solution). as the interdependence moves away from equality, the decisions become more influenced by the more independent partner. in the extreme the relationship becomes more dictatorial and more like "master-slave". generally the relationship has less commitment in both directions and is more likely to be temporary.

if one generalizes (and one shouldn't), equity partnerships, which is probably what is implied by interdependence, can be slow to progress or change but durable. the extreme alternative, independent-dependent partnerships tend to be efficient but more fragile.

hope this but you will have to site your own evidence. : )