Question

Why is achieving contract certainty important in reinsurance agreements?

a.

To avoid regulatory scrutiny

b.

To reduce legal risk

c.

To minimize credit risk

d.

To increase exposure to reinsurers

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).To reduce legal risk Explanation:Achieving contract certainty in reinsurance agreements is important to reduce legal risk, as it ensures that the responsibilities of the parties involved are clearly defined, potentially avoiding disputes and legal issues.

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