Which of the Following Statements About Reinsurance Facilities for Insuring

question 22

Multiple Choice

Which of the following statements about reinsurance facilities for insuring high-risk drivers is (are) true?
I.Underwriting losses in the reinsurance facility are shared by all auto insurers in the state.
II.An insurer must accept all applicants for insurance,but the insurer has the option of placing high-risk drivers in the reinsurance pool.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

Recognize the factors making demand more elastic or inelastic

Understand the role of advertising in shaping demand elasticity

Learn the effects of price changes on total revenue depending on elasticity

Identify the characteristics of goods with elastic versus inelastic demand