WAEC Commerce 2021 Objective — Question 26
Question 26 of 50 from the West African Examinations Council (WAEC) Commerce 2021 Objective paper, with the correct answer and a full explanation.
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The practice by which insurance companies share risks with other insurance companies is
- A. a contribution
- B. re-insuranceCorrect
- C. under insurance
- D. underwriting
Explanation
Re-insurance is when insurance companies transfer (‘cede’) some financial risk to another insurance company.
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