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    Question

    In which of the following arrangement, a commission is

    earned by many intermediaries through reinsurance agreements?
    A Commission churning Correct Answer Incorrect Answer
    B Fee churning Correct Answer Incorrect Answer
    C Money churning Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    In fee churning, a series of intermediaries take commissions through reinsurance agreements.┬а The initial premium is reduced by repeated commissions until there is no longer money to pay claims. The company left to pay the claims is often a business the conspirators have set up to fail.

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