2013 Fall Q18
Under disadvantages to the primary insurer the examiners report lists: Cash outlay, forgo other investment opportunities
But wouldn't the primary insurer be receiving cash?
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Under disadvantages to the primary insurer the examiners report lists: Cash outlay, forgo other investment opportunities
But wouldn't the primary insurer be receiving cash?
Comments
A commutation means the reinsurer returns the liabilities back to the primary insurer, therefore the primary insurer will receive cash in exchange for taking back the liabilities. You'll notice the footnote mentions that the table is mislabelled