Question

What helps the insurer to keep their well invested funds intact in situations where substantial gross payments need to be made immediately in respect of risks which are retained marginally?

a.

A credit facility

b.

A cash loss recovery facility

c.

An investment scheme

d.

A payment deferral facility

Answer: (b).A cash loss recovery facility Explanation:A cash loss recovery facility is administered in all outward arrangements to eliminate the strain arising from immediate gross payments in respect of risks which are retained marginally, helping the insurer to keep their well invested funds intact.

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Q. What helps the insurer to keep their well invested funds intact in situations where substantial gross payments need to be made immediately in respect of risks which are retained...

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