Identify the Incorrect Statement About Reinsurance

Identify the incorrect statement about reinsurance.

A) It increases the financial stability of insurers by spreading risk.
B) It facilitates direct assess of the original insured to the reinsurance company.
C) It facilitates placing large or unusual exposures with one company.
D) It helps small insurance companies stay in business, thus increasing competition in the industry.
E) It increases the likelihood of the original insurer to be able to pay its claims.