What effect, if any, will a reduction in an insurer's loss reserves have on net income and policyholders' surplus in the year that any such adjustment is made? Select one: A. It will increase net income and lower policyholders' surplus. B. It will have no affect on either net income or policyholders' surplus. C. It will increase both net income and policyholders' surplus. D. It will lower net income and increase policyholders' surplus