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:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, named after sponsors Senator Paul Sarbanes and Representative Michael Oxley.

Securities Fraud

Illegal practices involving the deception of investors or manipulation of financial markets, often leading to financial loss for investors.

Organizational Control

The processes, structures, and guidelines put in place within an organization to guide the behavior of its members and achieve its objectives.