CII Certificate in Insurance (IF1) Practice Test 2026 – Your All-in-One Guide to Mastering Insurance, Legal, and Regulatory Topics!

The correct choice indicates that a reinsurer typically accepts business from an insurer that has originally underwritten the risk. In the reinsurance industry, primary insurers (also known as cedents) transfer portions of their risk to reinsurers to manage exposure and improve capital efficiency. The primary insurer retains a portion of the risk while transferring the remaining to the reinsurer. This relationship allows insurers to stabilize their loss experience and ensure they can handle larger claims by leveraging the reinsurer's capacity.

Choosing business originally underwritten by an insurer reflects the core function of reinsurance, which is to provide additional security and capacity to primary insurers. This operational model enables primary insurers to underwrite more policies than they could individually by sharing risks, thus it is fundamental for the stability of the insurance market.

The other options involve scenarios that do not align with the typical practices in reinsurance. Individuals who have insured risks would not logically be a source for reinsurers since reinsurers deal with institutional providers rather than individual policyholders. Non-insurance companies with large needs might present unique risks, but reinsurers typically function through established insurers rather than directly engaging with non-insurance entities. Lastly, risks refused by another insurer may imply higher degrees of uncertainty or potential losses, which reinsurers usually avoid