Which of the Following Is NOT a Possible Result When

question 70

Multiple Choice

Which of the following is NOT a possible result when a property-liability company purchases reinsurance?

• A)improved capital position.
• B)limits on losses on reinsured policies.
• C)stabilized cash flows.
• D)dilution of earnings per share.
• E)All of the options are possible results of purchasing reinsurance.

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Definitions:

Fidelity

The degree of accuracy by which a copy reproduces its source or the loyalty to faithfulness to obligations, duties, or commitments.

Dukes of Burgundy

Titles held by the rulers of the Burgundian State, spanning parts of modern-day France, Belgium, and the Netherlands from the 9th to the 15th centuries.

Flanders

A historical region in Northern Europe that today spans parts of Belgium, France, and the Netherlands, known for its role in the medieval and early modern textile trade and art.

Decentralization

The process of distributing or dispersing functions, powers, people, or things away from a central location or authority.