JAMB Commerce 2011 Objective — Question 22

Question 22 of 49 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2011 Objective paper, with the correct answer and a full explanation.

The agreement of insurers to Spread risks among themselves is a major feature of A. life assurance B. reinsurance C. underwriter D. marine insurance

A. A. life assurance
B. B. reinsuranceCorrect
C. C. underwriter
D. D. marine insurance

Explanation

In marine insurance, the amount involved is usually so much that it is difficult for only one insurance company to compensate at the time of events. Thus, many insurance companies come together to share the loss in the case of events - this is reinsurance.

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