ABC Insurance Company entered into a reinsurance agreement with XYZ Reinsurance
Under the contract, XYZ Re has no liability unless ABC's loss ratio exceeds 85 percent for the year. XYZ Re agreed to pay all losses in excess of the 85 percent loss ratio. ABC Insurance Company is using reinsurance to
A) stabilize profits.
B) reduce the unearned premium reserve.
C) provide large risk capacity.
D) retire from a line or territory.
Answer: A
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In a complex formal report, it is often helpful to include
A) a table of contents that lists every heading in the report plus titles of illustrations and tables. B) two tables of contents: a high-level table that shows only major headings, followed by a detailed table that includes all headings and subheadings. C) everything but prefatory parts in the table of contents. D) everything but supplementary parts in the table of contents. E) asterisks beside the titles of all key parts in the table of contents.
Most early interpretations of the Hawthorne studies argued that the factor that best explained increased output was:
A. money. B. days off. C. human relations. D. lighting. E. free food.
When a company discounts an interest-bearing note at a bank with recourse:
a. The company is assured payment at maturity. b. The company will receive the full amount of the note plus interest. c. The company has a contingent liability from the time the note is discounted until its maturity date. d. The bank assumes the credit risk on non-payment at the maturity date.
"Valuing diversity" essentially means accepting accents or language, dress or food of employees whose race, ethnicity, or gender differs from your own.
Answer the following statement true (T) or false (F)