- 1 Marks
Question
The capital requirement for Re-insurance business is
A. N1 billion
B. N2 billion
C. N3 billion
D. N4 billion
E. N10 billion
Answer
E. N10 billion
Explanation:
The answer is E because the regulatory authorities typically set a high capital requirement for Re-insurance businesses to ensure that these companies are financially stable enough to handle significant claims. The N10 billion capital requirement reflects the necessary financial strength needed for Re-insurance operations.
- Tags: Business Law, Capital requirement, Finance, Insurance, Re-insurance
- Level: Level 1
- Topic: Business Ethics and Corporate Governance
- Series: NOV 2014
- Uploader: Dotse