JAMB Commerce 2011 Question 24

Question 24

Insurance

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

  1. A.reinsurance
  2. B.life assurance
  3. C.underwriter
  4. D.marine insurance.
Show the answer and explanation

Answer: A (reinsurance)

Explanation

In reinsurance an insurer passes part of a large risk to other insurers.