What Does Risk Shifting Mean?

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What does Risk Shifting mean? Read on to discover the definition & meaning of the term Risk Shifting - to help you better understand the language used in insurance policies.

Risk Shifting

Risk Shifting

Used in tax deductibility discussions, the term connotes the transfer of risk to a separate party. In tax disputes, the Internal Revenue Service (IRS) and numerous courts have required the presence of both risk shifting and risk distribution to find a financial arrangement to be "insurance."

We hope the you have a better understanding of the meaning of Risk Shifting.

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