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After the successful negotiation of discounted fees for medical services, Smiley Insurance decided to make an adjustment to reduce its loss reserves. Which one of

After the successful negotiation of discounted fees for medical services, Smiley Insurance decided to make an adjustment to reduce its loss reserves. Which one of the following correctly describes how this adjustment will affect the net income and policyholder's surplus in the year the adjustment is made? Available answer options Select only one option A The adjustment will decrease the policyholder's surplus but not change the net income. B The adjustment will decrease both the net income and policyholder's surplus. C The adjustment will increase the net income but not change policyholder's surplus. D The adjustment will increase both the net income and policyholder's surplus

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