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To an Insurer, the Advantages of Reinsurance Include All but One

Question 43

Multiple Choice

To an insurer, the advantages of reinsurance include all but one of the following:


A) directly increasing profits,
B) stabilizing profits,
C) reducing unearned premium reserve requirements,
D) enabling an insurer to retire from underwriting a given segment of its business,
E) enlarging financial capacity to accept risk.

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