Question

What is one of the advantages of reinsurance arrangements?

a.

Maximizing losses

b.

Sharing of risks

c.

Limiting innovation

d.

Reducing underwriting assistance

Answer: (b).Sharing of risks Explanation:One of the advantages of reinsurance arrangements is sharing of risks between the insurance company and the reinsurer, which minimizes losses.

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Q. What is one of the advantages of reinsurance arrangements?

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