Factors That May Result in More Restrictive Underwriting Decisions Include

question 37

Multiple Choice

Factors that may result in more restrictive underwriting decisions include which of the following?
I.Inadequate rates.
II.The unavailability of reinsurance at favorable terms.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Sales-leaseback Transaction

A financial arrangement where one sells an asset and immediately leases it back from the buyer, effectively freeing up cash while retaining the use of the asset.

Seller-lessee

In a sale-leaseback transaction, the original owner who sells an asset and then leases it back from the new owner, retaining possession and use of the asset.

Deferred

Postponed or delayed; in financial terms, it often refers to expenses or income that will be realized at a future date.

Operating Lease

A leasing agreement allowing one party to use an asset owned by another party for a specified time period without ownership transfer.