All the Following Are True Concerning FAIR (Fair Access to Insurance

question 17

Multiple Choice

All the following are true concerning FAIR (Fair Access to Insurance Requirements) plans except:

• A)are one possible solution to the insurance availability problem
• B)are found in only four states
• C)are designed to deal with unavailability of property insurance
• D)have not been profitable in most states most years

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods and services that can be produced with a given set of resources and technology, illustrating the concept of opportunity cost.

Optimal Point

The most favorable or advantageous condition or value of a variable determined within a given set of constraints.

Marginal Benefits

The added pleasure or value that comes from the additional consumption or production of a good or service unit.

Marginal Costs

The supplementary cost involved in the production of one more unit of a product or service.