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All the following statements concerning the retention limit of a life insurance company are correct, EXCEPT: A company sets its retention limit so as to
All the following statements concerning the retention limit of a life insurance company are correct, EXCEPT:
A company sets its retention limit so as to prevent wide fluctuations in mortality costs. | ||
The larger the volume of insurance in force, the lower should a life insurer normally set its retention limit. | ||
The larger the insurer's surplus, the higher it may safely set its retention limit. | ||
The longer a company has been in business, the higher it may safely set its retention limit. |
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