Question

What does "offset" mean in the context of agreements or transactions?

a.

To reduce the owed amount by crediting amounts owed by the second party

b.

To increase the owed amount by crediting amounts owed by the second party

c.

To transfer the owed amount from one agreement to another

d.

To calculate the owed amount based on the total transactions made

Posted under IC85 Reinsurance Management

Answer: (a).To reduce the owed amount by crediting amounts owed by the second party Explanation:"Offset" can be defined as the act of reducing the amount owed by one party to a second party under one agreement or transaction by crediting the first party with amounts owed by the second party under other agreements or transactions. It is used to determine the net amount owed between the parties.

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