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Examveda

If assets are overvalued, the result would be

A. More surplus

B. Less surplus

C. More or less surplus

D. New business strain

Answer: Option A

Solution(By Examveda Team)

If assets are overvalued, the result would be more surplus. As a result of over valuation of all the assets of an insurance company, the company's financial statements would show more surplus than the actual one.

This Question Belongs to Commerce >> Insurance

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