Question

What do credit ratings primarily assess?

a.

Ability to meet non-policy obligations

b.

Investment portfolio performance

c.

Market share and customer base

d.

Claims settlement capacity

Answer: (d).Claims settlement capacity Explanation:Credit ratings primarily assess the capacity of insurers and reinsurers to settle claims. They provide an evaluation of the ability of the insurer or reinsurer to meet their policy obligations and honor claims made by policyholders.

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Q. What do credit ratings primarily assess?

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