Final Answer:
(T) True. An insurer that is in run-off cannot emerge as an ongoing insurer.
Step-by-step explanation:
In insurance, a company in run-off means it has stopped underwriting new policies and is winding down its existing liabilities. Once in run-off, the focus shifts to settling claims and managing existing policies until their expiration. The decision to enter run-off is often due to various factors such as financial challenges, market conditions, or strategic shifts.
An insurer in run-off faces a finite life cycle, and its goal is to responsibly close its operations. This process involves managing existing risks, settling claims, and eventually ceasing all insurance activities.
Emerging as an ongoing insurer contradicts the fundamental concept of run-off, which entails a deliberate cessation of underwriting activities.
For a company to become an ongoing insurer, it would need to resume underwriting new policies, which is contrary to the purpose of being in run-off.
This transition would require a strategic reversal of the decision to wind down operations and would be highly uncommon. Therefore, the statement holds true in the context of the insurance industry.