23) Which of the following statements about underwriting policy is (are) true? I-A company must establish an underwriting policy consistent with company objectives. II-Underwriting policy is usually subjective and allows the underwriter considerable flexibility with respect to lines written and forms used. A) I only B) II only C) both I and II D) neither I nor I 24)The underwriting process begins with the A) agent. B) desk underwriter. C) inspection report. D) actuary. 25) Which of the following statements about reinsurance is true? A) A reinsurer may not purchase reinsurance. B) The reinsurer is the first insurer that provides claims services to the insured after a loss occurs. C) The amount of insurance transferred to a reinsurer is called the net retention. D) The insurer transferring business to a reinsurer is called the ceding company 26) A reinsurance contract that is entered into on a case-by-case basis after an application for insurance is received by a primary insurer is called A) a reinsurance pool. B) automatic treaty reinsurance. C) retrocession. D) facultative reinsurance. 27) Sue double-majored in mathematics and statistics in college. She also enrolled in a number of finance courses. After graduation, she was hired by Econodeath Insurance Company. Her job is to calculate premium rates for life insurance coverages. Sue is a(n) A) actuary. B) underwriter. C) claims adjustor. D) producer. 28)The process of transferring risk to the capital markets through the use of financial instruments such as bonds, futures contracts, and options is known as A) consolidation of risk. B) avoidance of risk. C) securitization of risk. D) compartmentalization of risk