What is reinsurance?

Reinsurance called internal contractual relationship insurance companies over the sharing of the risk of his client. This is what happens when a large object insured property or moral rights, and payment of compensation for an occurrence may affect the solvency of the insurer. In this case, it reinsures its obligations to another insurer. This right is granted by Article 967 of the Civil Code, which states: "The risk of payment of insurance compensation or the insured amount assumed by the insurer under the insurance contract, may be insured by them wholly or partially with another insurer (s) on the prisoner with the last contract of reinsurance" .