Question

What is moral hazard in reinsurance?

a.

The risk of granting cover through an insurance policy

b.

The risk of inefficient technical attention

c.

The risk of unjustified, exaggerated, or fraudulent claims

d.

The risk inherent in all human undertaking

Answer: (d).The risk inherent in all human undertaking Explanation:Moral hazard in reinsurance refers to the risk inherent in all human undertaking, which can occur to the detriment of both the insurer and the reinsurer.

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Q. What is moral hazard in reinsurance?

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