The practice by which an insurance company accepts a very large risk and later shares it with other insurance companies is called
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Correct Answer: Option C
Explanation:
Re-insurance occurs when an insurance company transfers or shares part of a risk it has accepted with another insurance company. This enables the original insurer to reduce its exposure to a very large loss and spread the risk among insurers.
Re-insurance occurs when an insurance company transfers or shares part of a risk it has accepted with another insurance company. This enables the original insurer to reduce its exposure to a very large loss and spread the risk among insurers.