Contrast the definition in part a. above, with the current requirement in the U.S. for a contract to qualify as reinsurance?

Insurance

Are you having trouble answering the question “Contrast the definition in part a. above, with the current requirement in the U.S. for a contract to qualify as reinsurance?”? You don’t have to worry about it anymore. Azanswer team is here with the correct answer to your question.

Contrast the definition in part a. above, with the current requirement in the U.S. for a contract to qualify as reinsurance?

Answer: 

-IFRS 4: the trigger to meet this definition includes only an assessment of insurance risk and does not have to include timing risk, as is required in the U.S.

-The US requires indemnification, whereas IFRS specifies compensation.

You should now have gotten the answer to your question “Contrast the definition in part a. above, with the current requirement in the U.S. for a contract to qualify as reinsurance?”, which was part of Insurance MCQs & Answers. Thanks for choosing us.