Question

How do some insurers reduce administrative work related to reserves and interest?

a.

By retaining reserves and waiving interest

b.

By waiving reserves and retaining interest

c.

By adjusting commissions instead of calculating reserves and interest

d.

By avoiding double taxation through international agreements

Posted under IC85 Reinsurance Management

Answer: (a).By retaining reserves and waiving interest Explanation:Some insurers may choose to retain reserves but waive interest to reduce administrative work. This means they keep the reserves intact but forgo the interest income, simplifying the calculation and management of the interest component while still maintaining the necessary reserves.

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