Question

Which of the following is incorrect with respect to advantages of reinsurance?

a.

The net premiums and losses are stabilised over a shorter period of time

b.

An insurer cannot accept new and untested risk exposures with reinsurance

c.

The incidence of loss gets widely distributed

d.

The problem of accumulation within each line of business and between different lines is controlled

Posted under IC85 Reinsurance Management

Answer: (b).An insurer cannot accept new and untested risk exposures with reinsurance Explanation:The correct statement is "An insurer can accept new and untested risk exposures with reinsurance support".

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Q. Which of the following is incorrect with respect to advantages of reinsurance?
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