Surplus would arise in an insurance company if

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Surplus would arise in an insurance company, if

A. The actual experience is worse than what it had assumed

B. The actual experience is better than what it had assumed

C. The liabilities are under/over valued

D. The assets are valued in a conservative manner

Answer: Option B

When the actual experience of an insurance company is better than what it had assumed, the result would be surplus (profit) for the company.

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