An increase in loss reserves may lead to offset by a reduction in premiums and a decrease in loss reserves may be a receivable for additional premiums.

Posted by: Pdfprep Category: AFE Tags: AFE exam questions, AFE practice exam, AFE Designation Post Date: February 16, 2021

An increase in loss reserves may lead to offset by a reduction in premiums and a decrease in loss reserves may be a receivable for additional premiums.
A . True
B . False

Answer: B

An increase in loss reserves may lead to offset by a reduction in premiums and a decrease in loss reserves may be a receivable for additional premiums.

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