Question

What is one advantage of pools for smaller companies with limited reinsurance expertise?

a.

Greater control over the constitution of the business

b.

Access to underwriting agencies

c.

Maximized profitability

d.

Exposure to high-risk perils

Answer: (b).Access to underwriting agencies Explanation:That pools accessible through intermediaries and underwriting agencies may be attractive for smaller companies with little or no reinsurance expertise of their own. This suggests that smaller companies can benefit from access to underwriting agencies through pools.

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Q. What is one advantage of pools for smaller companies with limited reinsurance expertise?

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