Onemoreexamtogo
Keen member
Hello,
Just would like to gain clarity on this point. The core reading says:
"Insurance business transfers (IBTs) are often undertaken to achieve true finality for the transferor company. After the transfer has been completed, the transferor has no remaining exposure to the transferred business, while at the same time cover for the policyholder is maintained."
I understood that IBT means EVERYTHING (under the IBT) from the insurer are transferred elsewhere, like the policies are eliminated from its book. The highlighted text was saying the policyholder was not affected by the transfer and continued to be reinsured, correct? and p/h no longer has relationship with the insurer who transferred the business.
Thanks!
Just would like to gain clarity on this point. The core reading says:
"Insurance business transfers (IBTs) are often undertaken to achieve true finality for the transferor company. After the transfer has been completed, the transferor has no remaining exposure to the transferred business, while at the same time cover for the policyholder is maintained."
I understood that IBT means EVERYTHING (under the IBT) from the insurer are transferred elsewhere, like the policies are eliminated from its book. The highlighted text was saying the policyholder was not affected by the transfer and continued to be reinsured, correct? and p/h no longer has relationship with the insurer who transferred the business.
Thanks!
