Which of the Following Statements Is True Regarding Insurance Market

question 27

Multiple Choice

Which of the following statements is true regarding insurance market conditions and underwriting results?

• A)A combined ratio greater than one (or 100 percent)indicates profitable underwriting.
• B)In a "soft" insurance market,more retention is used than in a "hard" insurance market.
• C)Insurance rates are high and underwriting standards are tight when the insurance market is "hard."
• D)Property and liability insurance premiums and underwriting standards do not fluctuate over time.

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Definitions:

Competencies

The skills, knowledge, and abilities that individuals need to perform a job effectively.

IntrAdisciplinary Teams

Groups comprised of experts from within the same discipline who collaborate to achieve common objectives, focusing on depth in their field.

Practice Environment

The setting or context within which professional services are provided, encompassing physical, social, and organizational factors that affect the quality and nature of professional practice.

Governing Boards

Bodies that have ultimate decision-making authority within organizations, overseeing policies and management.