When selecting treaty reinsurance limits$,$ one factor that should be considered is loss adjustment expenses. Loss adjustment expenses are important because they are

Available answer options

Select only one option

A

Indicative of primary insurers' underwriting practices and internal controls.

B

Pro$-$rated between the primary insurer and the reinsurer.

C

Considered part of the loss and generally added to the overall amount of the loss.

D

Equally high for all different types of insurance sold by primary insurers.