Question

What is a potential advantage of writing business on a direct basis?

a.

Extensive world-wide contacts of brokers

b.

Lower costs associated with direct writing

c.

Greater control over the quality of business

d.

Higher commission fees earned by the insurer

Answer: (c).Greater control over the quality of business Explanation:Writing business on a direct basis allows for greater control over the quality of business. This suggests that maintaining direct relationships with clients can provide advantages in ensuring the quality of the accepted business.

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Q. What is a potential advantage of writing business on a direct basis?

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