A Credit-Based Score That Insurers Claim Is Highly Predictive of Future

question 2

Multiple Choice

A credit-based score that insurers claim is highly predictive of future claims costs is an individual's

• A)combined ratio.
• B)loss ratio.
• C)insurance score.
• D)underwriting score.

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Definitions:

One-Time Game

A strategic interaction where players make decisions once without the expectation of future interactions.

Positive-Sum Game

A situation in economic, political, or cooperative contexts where all participants can gain or benefit in some way.

Zero-Sum Game

A situation in game theory where the gain of one participant is exactly balanced by the loss of another participant.

Credible Threat

A promise of negative consequences that is believable and likely to influence behavior in strategic situations.