Final answer:
False. The policyholder does not have a contract with the reinsurer if the insurer has a contract with the reinsurer.
Step-by-step explanation:
False. If an insurer has a contract with a reinsurer, it does not mean that the policyholder has a contract with the reinsurer. The contract between the insurer and the reinsurer is a separate agreement that deals with the transfer of risk from the insurer to the reinsurer.
For example, let's say an insurance company sells a policy to a policyholder and then transfers a portion of that risk to a reinsurer. The reinsurer does not have a direct contract with the policyholder. The policyholder's contract is with the insurer, and any claims or benefits are managed by the insurer.
It's important to understand the different roles and relationships in the insurance industry to grasp how contracts and risk transfers work between insurers and reinsurers.