Subj 303 April00 Q10

Discussion in 'CA1' started by Seiru1, Mar 21, 2009.

  1. Seiru1

    Seiru1 Member

    Why is stop loss not going to be used?
     
  2. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    It could be used (although the examiners' report doesn't mention it). It may be sought as the company is expanding into new areas.

    However, the other contracts mentioned in the solution should be adequate to smooth profits to the desired level. In any case, the cover may not be available on acceptable terms to the insurer.
     
  3. Seiru1

    Seiru1 Member

    Thanks

    That make sense
     

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