All of the Following Are Reasons for a Primary Insurer

question 36

Multiple Choice

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.

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Definitions:

Complementary

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Fixed Proportions

A production condition where inputs are used in constant ratios, without substitution between them, over a range of output levels.

Demand for Labor

The total amount of workers that employers want to hire at a given wage rate and time.

Productivity of Labor

The output per labor hour or worker, indicating how efficiently labor is used in the production of goods and services.