Which of the following observations concerning reinsurance is FALSE?
A. It is an alternative to managing risk on a PC insurer's balance sheet.
B. Non-U.S. reinsurers are majority players in U.S. reinsurance business.
C. It does not enable the insurer to improve its capital position.
D. It can be used to limit losses and stabilize cash flows.
E. It represented 2.6 percent of total PC industry assets in 2012.
Ans: C. It does not enable the insurer to improve its capital position.
Business
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