Question

What is Financial reinsurance primarily used for?

a.

To cover losses from specific catastrophic events

b.

To release economic assets like Value in Force for cash equivalent assets

c.

To reinsure individual risks below a predetermined retention

d.

To reinsure losses exceeding a predetermined retention for a portfolio

Answer: (b).To release economic assets like Value in Force for cash equivalent assets Explanation:Financial reinsurance is primarily used to trade economic assets like Value in Force for cash equivalent assets that can be used elsewhere in the business.

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Q. What is Financial reinsurance primarily used for?

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