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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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