Question

What makes determining the profit of a reinsurer difficult?

a.

The sensitivity of reinsurance to taxation

b.

The need for reserves in reinsurance

c.

The fluctuations in results accepted by reinsurance

d.

All of the above

Answer: (d).All of the above Explanation:Determining the profit of a reinsurer is difficult due to the sensitivity of reinsurance to taxation, the need for reserves, and the accepted fluctuations in results.

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Q. What makes determining the profit of a reinsurer difficult?

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