Question

What are the advantages of reinsurance?

a.

Increase in net premiums and losses

b.

Concentration of losses in a shorter period of time

c.

Widely distributed incidence of loss

d.

Increase in the likelihood of accumulations within each line of business

Answer: (c).Widely distributed incidence of loss Explanation:The advantages of reinsurance include widely distributed incidence of loss and control of accumulations within each line of business and between different lines.

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Q. What are the advantages of reinsurance?

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