The agreement of insurers to spread risks among themselves is a major feature of?

By: |Published on: Dec 14|Categories: Commerce JAMB| 0 comments

A. reinsurance
B. life insurance
C. underwriter
D. marine insurance

Correct Answer:

Option A – reinsurance

Explanation

Reinsurance is the practice whereby insurers transfer portions of their risk portfolios to other parties by some form of agreement to reduce the likelihood of paying a large obligation resulting from an insurance claim.

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