Question
Part B. Which of the following statements is false? A)Life/annuity insurers tend to have higher levels of surplus-to-asset ratios than P&C insurers due to facing
Part B. Which of the following statements is false?
A)Life/annuity insurers tend to have higher levels of surplus-to-asset ratios than P&C insurers due to facing higher levels of underwriting risk relative to P&C insurers.
B)By opting for reinsurance, an insurer relinquishes a portion of its potential underwriting profits in favor of the reinsurer.
C)Reinsurance primarily helps insurers to reduce their capital requirements without an increase in insolvency risk.
D) The two largest liabilities faced by insurers are their loss reserves and reserves for unearned premiums.
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