Question

What is the purpose of a provisional commission?

a.

To stabilize the results under a treaty

b.

To ensure timely payment of commission

c.

To maximize profits for the reinsurer

d.

To reduce the loss in bad years

Answer: (b).To ensure timely payment of commission Explanation:The purpose of a provisional commission is to ensure timely payment of commission.

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Q. What is the purpose of a provisional commission?

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