Question

What advantage do pools provide for ceding insurers?

a.

Greater control over the constitution of the business

b.

Access to underwriting agencies

c.

Maximized profitability

d.

Reduced exposure to high-risk perils

Answer: (d).Reduced exposure to high-risk perils Explanation:Pools may be attractive for smaller companies with little or no reinsurance expertise, indicating that participating in pools can help reduce their exposure to high-risk perils they may not be equipped to handle.

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Q. What advantage do pools provide for ceding insurers?

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