Answer-What is the primary function of a reinsurer?

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Question

What is the primary function of a reinsurer?

A To share insurance risks with the primary insurer. Correct Incorrect

B To sell insurance directly to the public. Correct Incorrect

C To investigate and settle insurance claims Correct Incorrect

D To provide financial advice to insurance companies Correct Incorrect

E None of the above Correct Incorrect

Detailed 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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What is the primary function of a reinsurer?

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