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    Question

    What is the primary function of a reinsurer?

    A To share insurance risks with the primary insurer. Correct Answer Incorrect Answer
    B To sell insurance directly to the public. Correct Answer Incorrect Answer
    C To investigate and settle insurance claims Correct Answer Incorrect Answer
    D To provide financial advice to insurance companies Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Reinsurers provide financial protection to primary insurers by accepting a portion of their risk. This allows primary insurers to write larger policies, diversify their risk, and maintain financial stability.

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