Which of the Following Arises in Policies in Which the Insured

question 73

Multiple Choice

Which of the following arises in policies in which the insured event occurs during a coverage period but a claim is not filed or reported until many years later?

• A)Short-tail losses.
• B)Adverse selection.
• C)Moral hazard.
• D)Long-tail losses.
• E)Social inflation.

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Definitions:

Policy Experiments

Trials or pilot programs undertaken by governments, organizations, or researchers to test new ideas, policies, or interventions before wider implementation to assess their effectiveness and outcomes.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Workers' Demands

The specific conditions or changes that workers collectively ask for from their employers or governments, which can include higher wages, shorter hours, or better working conditions.

Management Decisions

Choices and determinations made by the management of an organization concerning its direction, operations, and policies.