New Liability Insurance Company Began Operations Last Year and Has

question 12

Multiple Choice

New Liability Insurance Company began operations last year and has been very successful.The company's ability to grow is being restricted by an accounting rule that requires insurers to realize acquisition expenses immediately,while not realizing premiums received as income until some time has passed.Reinsurance is often used in such cases for which of the following purposes?

• A)to stabilize profitability
• B)to reduce the unearned premium reserve
• C)to provide protection against catastrophic losses
• D)to withdraw from a line of business or territory

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Definitions:

Leader Activities

Actions or initiatives taken by a leader to influence, guide, or direct others.

Confidence

The belief in one's own abilities or the assurance in the certainty of something, often considered a key trait for effective leadership.

Optimism

The tendency to maintain a positive outlook and expect favorable outcomes.

Motivational Concepts

Theories and principles that describe what drives individuals to initiate, direct, and persist in actions to achieve personal or organizational goals.