It certainly seems to. In a couple of campaigns I've had an annoying reoccurrence - the enemy simply seems to spawn generals out of thin air!
For instance, in Venetian campaign, I had an uber-assassin in Northern Italy. My plan was to assassinate all the Milanese generals except for their faction leader, who was parked in Dijon. I would then siege Dijon and destroy the faction. I thought I was doing a pretty good job of killing off those family members, and went in for the kill on another one in a pretty routine manner. The general was leading a standing army in the middle of Northern Italy. I assassinated the general as normal, and the army was then led by a captain. However, next turn, without any movement of a general into the army, it was suddenly led by a general again (and I could tell he was new, since he had pretty average stats). I killed him, and the same thing kept happening.
In another campaign - Spain this time - Portuguese generals kept popping up in Pamplona. They always had 2 or 3 generals. They only had Pamplona, and they were sending armies out at me to besiege Toledo and Zaragoza. I defeated them at my walls every time (no assassins this time), killing the generals, but they still had 2 or 3 generals parked in Pamplona every turn.
Is it possible to destroy any faction other than the Mongols by killing all their generals? Doesn't seem to be for me.
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