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Author Question: All of the following are reasons for a primary insurer to use reinsurance EXCEPT A) to increase ... (Read 69 times)

rachel9

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on: Jul 11, 2018
All of the following are reasons for a primary insurer to use reinsurance EXCEPT
 
  A) to increase the unearned premium reserve.
  B) to increase underwriting capacity.
  C) to protect against catastrophic losses.
  D) to stabilize profits.

Question 2

The unearned premium reserve of an insurer is
 
  A) an asset representing the investments made with premium income.
  B) a liability representing the unearned portion of gross premiums on outstanding policies.
  C) a liability representing claims that have been filed, but not yet paid.
  D) the portion of the insurer's net worth belonging to policyowners.


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amcvicar

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Reply #1 on: Jul 11, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: B


rachel9

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Reply 2 on: Jul 11, 2018
Gracias!

aruss1303

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Reply 3 on: Yesterday
Excellent

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