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.
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.