A Call Option on the Loss Ratio Incurred in Writing

question 61

True/False

A call option on the loss ratio incurred in writing catastrophe insurance with a capped payout is referred to as a maximum call spread.

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Definitions:

Void For Vagueness

A legal doctrine stating that a law is invalid if it is so unclear or poorly defined that individuals cannot reasonably understand what actions are prohibited or required.

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The welfare and protection of the general public, typically ensured by government organizations.

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