WAEC Commerce 2025 Objective — Question 24

Question 24 of 51 from the West African Examinations Council (WAEC) Commerce 2025 Objective paper, with the correct answer and a full explanation.

Sharing risks among insurance companies is

A. indemnity
B. re-insuranceCorrect
C. subrogation
D. underwriting

Explanation

Reinsurance is essentially "insurance for insurance companies" — a risk management tool where the ceding company transfers some of its risk to another insurer.

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