CAS Practice Exam 2026 – Complete Study Guide

Question: 1 / 400

From which sources can reinsurance be purchased?

Only from professional reinsurers

From primary insurers, reinsurers, and brokers only

From professional reinsurers and reinsurance pools

The correct answer highlights that reinsurance can be sourced from both professional reinsurers and reinsurance pools. Professional reinsurers are specialized companies that underwrite risks for primary insurers, allowing those insurers to reduce their exposure to large losses. These reinsurers have the expertise and resources to evaluate risk effectively, making them a reliable source for reinsurance.

Reinsurance pools, on the other hand, consist of a group of insurers that come together to share risks. By pooling resources, these insurers can collectively underwrite large or catastrophic risks that may be burdensome for any single insurer. This collaboration allows for a more diversified risk spread and increased capacity.

Together, these sources provide flexibility and options in how primary insurers manage their own risks, accommodating a variety of needs based on the nature and scale of the risks they face.

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Only from reinsurance pools and syndicates

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