Apex Insurance Company Wrote a Large Number of Property Insurance

question 16

Multiple Choice

Apex Insurance Company wrote a large number of property insurance policies in an area where earthquake losses could occur.When the president of Apex was asked if she feared that a severe earthquake might put the company out of business,she responded,"Not a chance.We transferred most of that risk to other insurance companies." An arrangement by which an insurer that initially writes insurance transfers to another insurer part or all of the potential losses associated with such insurance is called

• A)hedging.
• B)speculating.
• C)reinsurance.
• D)loss avoidance.

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Definitions:

Settle

To establish a residence or community in a new place.

Black Legend

A historiographical term that refers to a style of tendentious, subjective historical writing or propaganda that demonizes the Spanish Empire, its people, and its culture, minimizing positive achievements and magnifying negative aspects of Spanish colonial rules, particularly in the Americas.

North American Empire

Generally refers to the territorial expansions and colonial pursuits of European powers and later the United States across the North American continent from the early modern period through the 19th century.

Liberty

The quality or state of being free; the power to do as one pleases, free from oppressive restrictions imposed by authority on one's way of life, behavior, or political views.