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Optional reinsurance is generally used for quality or dangerous risks, as policies can be adapted to certain circumstances. It can sometimes be less attractive to the cedar company, because the reinsurer may insist that the cedar company retain some responsibility for the riskiest policies. In these scenarios, the cedar company may have to go to several different reinsurers to transfer the remaining liability. A combined form of shareholding and loss reinsurance which provides that the reinsurer shall compensate, subject to taking into account a premium equal to a fixed percentage of the premium in kind of the transferring company on the covered transaction (a) the transferring company for the amount of the damage for any risk exceeding a specified deductible threshold; (b) after deduction of excess recoveries for each risk, to offset a fixed share of the shares as a percentage of all remaining losses. Sometimes an insurance company wants to reduce the risk of paying an insurance entitlement for some of the policies in its portfolio. Insurers may assign or offer the policy to another insurance company that is willing to assume the risk of paying a fee for that policy. The company that receives the policy is referred to as a reinsurance company, while the insurer that transmits the policy to the reinsurer is referred to as a transferor`s company. However, the transferring company loses most of the premiums paid by policyholders for one of the policies transferred to the reinsurer. .