Question

How does the practice of deducting tax at source as a percentage of the reinsurance premium impact the administration costs of the insurer?

a.

Increases administration costs

b.

Reduces administration costs

c.

Has no impact on administration costs

d.

Depends on the specific insurer

Answer: (a).Increases administration costs Explanation:The practice of deducting tax at source as a percentage of the reinsurance premium increases the administration costs of the insurer.

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Q. How does the practice of deducting tax at source as a percentage of the reinsurance premium impact the administration costs of the insurer?

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