Question

What are the functions of reinsurance?

a.

Providing increased capacity

b.

Providing stabilisation of operating results

c.

Reinforcing the underwriter's attempts to establish an account which is homogeneous in both size and quality of risk

d.

All of the above

Posted under IC85 Reinsurance Management

Answer: (d).All of the above Explanation:The functions of reinsurance include providing increased capacity, stabilising operating results, and reinforcing the underwriter's attempts to establish an account which is homogeneous in both size and quality of risk.

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