Part 1 (200 words)

• What is the meaning of the term reinsurance?
• Explain the reasons for reinsurance.
• Explain the term securitization of risk.

Part 2

What unfair trade practices are each of the following insurance agents violating? Explain the terms that you use. 300 words

• Agent Jones offers a client to pay a portion of the premium if the client purchases a policy.
• Agent Peterson convinces a client to replace a life insurance policy with a new policy that adds little value.

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