Question

What is the main purpose of state reinsurance organizations?

a.

To transact reinsurance for its own sake

b.

To control and direct the activities of the local market

c.

To provide financial support to direct companies

d.

To increase reliance on foreign insurers

Answer: (b).To control and direct the activities of the local market Explanation:State reinsurance organizations have emerged as a means of controlling and directing the activities of the local market.

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Q. What is the main purpose of state reinsurance organizations?

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