Question

When may an insurer consider reinsuring as much as possible?

a.

In times of bad results

b.

In times of good results

c.

When the supply of reinsurance exceeds demand

d.

When the demand for reinsurance exceeds supply

Answer: (c).When the supply of reinsurance exceeds demand Explanation:There will however also be times when the supply of reinsurance exceeds demand. At such times, an insurer may be able to reinsure at terms which are so advantageous to him that he may consider it a shrewd financial move to reinsure as much as possible.

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Q. When may an insurer consider reinsuring as much as possible?

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