Which one of the following statements is correct?

Which one of the following statements is correct?




A. Insurers are prohibited from investing in social projects.
B. Insurance provides a source of investment funds for insurers but not for policyholders.
C. Insurers cannot invest premium income because it must be available to pay claims.
D. Insurers' investment income helps keep premiums at a reasonable level.



Answer: D. Insurers' investment income helps keep premiums at a reasonable level.

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