🎴 Flashcard Mode
Reinsurance
Card1 / 14
Mastered0
Review0
QuestionClick to flip
What is the primary purpose of reinsurance?
AnswerClick to flip back
A
To reduce the insurance company's risk exposure
💡 Explanation:
Reinsurance is primarily used by insurance companies to manage and reduce their risk exposure by transferring a portion of their liability to another insurance company.