Question

What happens if an insurer fails to maintain an acceptable degree of fluctuation of results?

a.

The insurer's retention effectively falls back

b.

The insurer's supply of reinsurance exceeds demand

c.

The insurer earns higher return on their investment portfolio

d.

The insurer obtains more business by cutting the rates of another insurer

Answer: (a).The insurer's retention effectively falls back Explanation:If an insurer fails to maintain an acceptable degree of fluctuation of results, their retention effectively falls back.

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Q. What happens if an insurer fails to maintain an acceptable degree of fluctuation of results?

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