WAEC Commerce 1996 Question 9

Question 9

Insurance

An insurance company shares its accepted risk with others in the form of

  1. A.reinsurance
  2. B.subrogation
  3. C.mutual insurance
  4. D.fidelity guarantee insurance
  5. E.contribution
Show the answer and explanation

Answer: A (reinsurance)

Explanation

Reinsurance passes part of a large risk to other insurers.