Which of the Following Is NOT a Possible Result When

question 21

Multiple Choice

Which of the following is NOT a possible result when a property & casualty 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 these are possible results of purchasing reinsurance.

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Definitions:

Defined-Benefit Plan

A type of pension plan in which an employer promises a specified pension payment upon retirement, determined by a formula considering factors like salary and duration of employment.

Cash Balance Plans

A type of defined benefit pension plan that holds an employee's retirement savings as a hypothetical account balance, which grows annually through employer contributions and interest credit rates.

Experienced Employees

Workers who have accumulated significant skill and knowledge in their field through prolonged exposure to various professional situations.

Short-Term Disability Insurance

Insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less.