Question

Distinguish between re-insurance and double insurance.

Answer 1

Basis of Distinction	Re-insurance	Double insurance
Purpose	To determine liability for loss.	Obtain protection in the case of an insurer's insolvency.
Parties	Insurer and re-insurer.	Insurers and the insured.
Claim	Only the original insured can claim reimbursement.	The insured can seek compensation from all insurers proportionally.
Legal Nature	The insured can seek compensation from all insurers proportionally.	Any law does not require double insurance.