Insurance Awareness - Reinsurance
Which entity primarily helps insurers maintain solvency by sharing their risk portfolios?
Which entity primarily helps insurers maintain solvency by sharing their risk portfolios?
easy Q2 of 15
Step-by-Step Solution
Step 1: Identify the entity managing insurer risk
Reinsurers accept portions of risk from insurers to help maintain financial stability and solvency.Step 2: Evaluate options
Insurance agents and brokers facilitate sales but do not share risk. Policyholders bear risk but do not help insurers maintain solvency.Final Answer:
Reinsurer → Option BQuick Check:
Reinsurers are the risk-sharing partners of insurers, crucial for solvency.
Quick Trick: Reinsurer = risk sharer for insurers.
Common Mistakes:
MISTAKES- Mistaking agents or brokers as risk bearers.
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