3-95 Which of the Following Observations Concerning Reinsurance Is FALSE

question 88

Multiple Choice

3-95 Which of the following observations concerning reinsurance is FALSE?

• A)It is an alternative to managing risk on a PC insurer's balance sheet.
• B)Non-U.S.reinsurers are majority players in U.S.reinsurance business.
• C)It does not enable the insurer to improve its capital position.
• D)It can be used to limit losses and stabilize cash flows.
• E)It represented 2.7 percent of total PC industry assets in 2009.

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Definitions:

Federal Loans

Government-issued loans intended to cover education costs for students, typically coming with fixed interest rates and specific repayment terms.

Credit Card Responsibility and Disclosure Act

U.S. federal legislation aimed at protecting consumers by making credit card agreements more transparent and limiting certain fees and interest rates.

Independent Income

Earnings obtained from sources other than traditional employment, such as investments, royalties, or business ventures, providing financial autonomy.

Co-signer

An individual who agrees to be equally responsible for repaying a loan or debt if the primary borrower fails to make payments.