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

Commerce
JAMB 2011

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

  • A. reinsurance
  • B. life insurance
  • C. underwriter
  • D. marine insurance
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Correct Answer: Option A
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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