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Roger Bolton of Grassley Re is becoming concerned about the reinsurance treaty Grassley Re has with Chevron Insurance. He just realized that Chevron, through another

Roger Bolton of Grassley Re is becoming concerned about the reinsurance treaty Grassley Re has with Chevron Insurance. He just realized that Chevron, through another reinsurance agreement, has now reduced its net retention. This action by Chevron concerns Roger based most specifically on which one of the following implications? Available answer options Select only one option A Chevron no longer believes the ceded loss exposures will be profitable. B Chevron's reduction in policyholders' surplus is a sign of financial impairment. C Chevron will not be able to pay Grassley Re its reinsurance premium on time. D Chevron's reduction in paid-in capital is a sign of financial impairment

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