Coinsurance Vs Reinsurance. Reinsurance is insurance for an insurance company, where by an insurance companies seeks for indemnification in case that a. This handout explains the meaning and difference between insurance and reinsurance.
Insurance companies charge premiums in return for covering risks. Specific annual stop loss reinsurance limits the primary carrier's liability each year to a specified percentage of total ultimate incurred loss. While contribution doctrine operates when an insured insure his property with a multiple insurance companies.