12-20 General diversification limits established by life and property and casualty insurance regulators are based on the concepts of modern portfolio theory.

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General diversification limits established by insurance regulators are based on the principles of modern portfolio theory, which aims to minimize risk by spreading investments across multiple asset classes. This is done to ensure that insurance companies have a diverse range of investments that are unlikely to fail all at once, reducing the risk of insolvency.

12-20 General Diversification Limits Established by Life and Property and Casualty