Which of the following is not a valid reason to reinsure an exposure?
A) To make insured exposures similar in dollar size
B) To provide the insured access to Lloyd's of London
C) To buy services from the reinsurer
D) To allow agents to be more competitive

Question

Quizplus · Accepted Answer

Reinsurance is primarily used to manage risk, stabilize loss experience, and provide capital relief among other reasons. Providing the insured access to Lloyd's of London is not a direct purpose of reinsurance; rather, it's a marketplace where various insurance and reinsurance activities take place.

Which of the Following Is Not a Valid Reason to Reinsure