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which one of the reasons for reinsurance stems from an unsafe reduction in policyholders surplus (surplus drain) due to the insurance accounting requirement to show

which one of the reasons for reinsurance stems from an unsafe reduction in policyholders surplus (surplus drain) due to the insurance accounting requirement to show all policy acquisition expenses as an immediate liability while at the same time only being able to show earned premium as an asset?
a. limit liability on large risks
b.stabilize loss experience
c. increase capacity
d. protect against catastrophes

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