Risk managers working outside the U.S.often use admitted insurers,even when they are not legally required to do so by the foreign government. Why?
A)even when the foreign government does not require it, the US government does
B)this is part of the unwritten code of ethics that US risk managers voluntarily adhere to
C)it results in both premiums and losses being expressed in terms of local currency
D)because foreign insurance contracts are generally written in English

Question

Quizplus · Accepted Answer

Using admitted insurers allows for premiums and losses to be expressed in terms of local currency, which can simplify financial reporting and help to manage currency exchange risk.

Risk Managers Working Outside the U