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Path: utzoo!linus!security!genrad!grkermit!masscomp!clyde!floyd!whuxle!mag
From: mag@whuxle.UUCP
Newsgroups: net.legal
Subject: Re: Insurance companies question
Message-ID: <225@whuxle.UUCP>
Date: Tue, 17-Jan-84 16:09:42 EST
Article-I.D.: whuxle.225
Posted: Tue Jan 17 16:09:42 1984
Date-Received: Wed, 18-Jan-84 07:36:29 EST
References: <488@hou5a.UUCP>
Organization: Bell Labs, Whippany
Lines: 6

Yes, this is called reinsurance, and allows the company to spread risk
and spread losses.  All insurers do it routinely, especially if the risk is
something like an ocean liner.  Sometimes it is done several levels
deep.

						Mike Gray, BTL, WH