Question

What is the objective of a reinsurer over a period of years?

a.

To obtain a profit on the reinsurances accepted

b.

To reduce the ceding commission or profit commission

c.

To stabilize the insurer's results

d.

To cover expenses and constitute reserves

Answer: (a).To obtain a profit on the reinsurances accepted Explanation:The objective of a reinsurer over a period of years is to obtain a profit on the reinsurances accepted.

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Q. What is the objective of a reinsurer over a period of years?

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