Final answer:
Yes, a company may use favorable RBC ratios in its promotional advertisements to distinguish itself from other insurers.
Step-by-step explanation:
The statement is true. A company may use favorable RBC (Risk-Based Capital) ratios in its promotional advertisements as a way to distinguish itself from other insurers.
RBC ratios are calculated using a formula that compares a company's capital to its risk exposure. It is a measure of the company's financial stability and ability to cover potential losses.
By highlighting a high RBC ratio in their advertisements, insurers can convey a sense of security and reliability to potential customers, setting themselves apart from competitors with lower ratios.