CII M97 Practice Questions - CII M97 Reinsurance Exam

The insured has direct privity of contract with the reinsurer and can sue the reinsurer directly for claim payments. The reinsurer becomes a co-insurer of the original risk jointly liable with the primary insurer. There is no privity of contract between the original insured and the reinsurer; the insurance and reinsurance contracts are legally distinct. The reinsurer assumes full legal responsibility for primary policy administration and claims handling.