Author Question: All of the following are reasons for a primary insurer to use reinsurance EXCEPT A) to increase ... (Read 72 times)

rachel9 · **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.