Tort damage awards increased significantly in a state. At the close of the latest session, the state's legislature passed a tort reform proposal that capped court awards for pain and suffering. The governor signed the bill and it went into effect immediately. A property and liability insurance company writes all of its business in the state where the tort reform measure was enacted. This law will affect the insurance company's capital position in which one of the following ways? Available answer options Select only one option A The insurers can decrease its loss reserves and capital will increase. B The insurer can eliminate its loss reserves and capital will increase. C The insurer's loss reserves will not be impacted and capital will remain unchanged. D The insurer will have to increase its loss reserves, and capital will decline