Which statement is true about disclosures when unsecured reinsurance recoverables exceed the threshold?

Which statement is true about disclosures when unsecured reinsurance recoverables exceed the threshold?

• A. Disclosures are required only if collateral is provided.
• B. The threshold is 2% of surplus and collateral matters.
• C. Recoverables exceed 3% of surplus and there is no collateral, disclosure is required.
• D. Disclosures are required regardless of collateral and threshold.

Answer: (C)