Question

The credit rating of a reinsurer is important to assess their:

a.

Technical expertise

b.

Financial stability

c.

Claims settlement efficiency

d.

Market reputation

Answer: (b).Financial stability Explanation:The credit rating of a reinsurer helps evaluate their financial strengths and security characteristics regarding their ability to pay under insurance policies and contracts. It informs the market about their financial strengths, indicating the importance of assessing their financial stability.

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Q. The credit rating of a reinsurer is important to assess their:

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