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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

    The correct answer is A. To share insurance risks with the primary insurer. Reinsurers provide financial protection to primary insurers by assuming a portion of their risk.

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