REINSURANCE

Pronunciation (US):

(GB):

 I. (noun) 

Sense 1

Meaning:

Sharing the risk by insurance companies; part or all of the insurer's risk is assumed by other companies in return for part of the premium paid by the insured

Example:

reinsurance enables a client to get coverage that would be too great for any one company to assume

Classified under:

Nouns denoting possession and transfer of possession

Hypernyms ("reinsurance" is a kind of...):

insurance (promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company)

Derivation:

reinsure (insure again by transferring to another insurance company all or a part of a liability assumed)

Credits