A group of unrelated insurance companies combine forces to underwrite a very high-risk insurance policy. What type of arrangement would this collaboration be most likely to be?

Question

Quizplus · Accepted Answer

When unrelated insurance companies combine forces to underwrite a high-risk insurance policy, they most likely form a syndicate. A syndicate is a temporary partnership formed for a specific purpose or project, and in this case, the purpose is to share the risk and cost of underwriting the high-risk insurance policy.

A Group of Unrelated Insurance Companies Combine Forces to Underwrite