REINSURANCE ARRANGEMENTS ASSOCIATED WITH GUARANTEE LEGAL RESPONSIBILITIES

The use of diversion responsibility or reinsurance arrangements as a way for insurance companies to protect themselves from losses by cooperating with company. One reason utilizing is distribute risk. Reinsurance becomes more understandable when claims occur, and it not possible have without having first. legal framework explained in the Criminal Code Law Number 40 2014 concerning business insurance. However, there no provision that clearly defines what meant reinsurance, which can cause problems if are insufficient answers regarding company's payment losses. Therefore, certainty necessary. research objective determine form guarantor normative law method used. Ex-Gratia Payment clause outlines company insured, allowing insured claim compensation insurer claims.