The Time Between Implementation of a Macro-Policy Change and When

question 62

Multiple Choice

The time between implementation of a macro-policy change and when the change exerts its primary influence is called the

• A) impact lag.
• B) recognition lag.
• C) administrative lag.
• D) tax reform lag.

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Definitions:

Coinsurance Clause

A provision in an insurance policy requiring the policyholder to bear a portion of the costs of a claim, reducing the insurer’s risk.

Fire Insurance Policy

A contract that provides compensation for damage or loss of property due to fire.

Recover

To regain or obtain compensation or restitution through legal means, often after a loss or injury.

Life Insurance Policy

A contract between an individual and an insurance company, promising payment to named beneficiaries upon the insured person's death.