New Liability Insurance Company began operations last year and has been very successful
The company's ability to grow is being restricted by an accounting rule that requires insurers to realize acquisition expenses immediately, while not realizing premiums received as income until some time has passed. Reinsurance is often used in such cases for which of the following purposes?
A) to stabilize profitability
B) to reduce the unearned premium reserve
C) to provide protection against catastrophic losses
D) to withdraw from a line of business or territory
Answer: B
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Answer the following statement true (T) or false (F)
A certificate of deposit represents:
A. a promissory note of payment by a bank that borrows reserves from another bank. B. a deposit in a checking account in a bank. C. a promissory note of payment by the issuing institution to the investor. D. a time deposit of a state government with the federal government. E. a time deposit at a bank or other financial intermediary.
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Indicate whether the statement is true or false
The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land
Indicate whether the statement is true or false