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A large organisation has entered into a surety arrangement using a counterparty to guarantee certain credit risks. The main risk to the organisation of the

A large organisation has entered into a surety arrangement using a counterparty
to guarantee certain credit risks. The main risk to the organisation of the counterparty
failing is that the organisation would
A. be liable for all future losses incurred on these credit agreements.
B. be responsible for all of the counterparty's losses.
C. be unable to self insure these risks.
D. have losses limited to the premium paid only.
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