If Insurance Premiums Are Going to Be Set Below the Actuarially

question 63

Multiple Choice

If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to make up the difference?

• A) government regulators and taxpayers
• B) insurance company shareholders
• C) other buyers of insurance
• D) taxpayers or other buyers of insurance

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Definitions:

Collectivism Societal

A societal orientation that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

Synergy

The increased effectiveness or achievement that results when individuals or groups work together compared to when they work separately.

Stereotyping

The act of ascribing a fixed, oversimplified, and often exaggerated or prejudiced image or idea to a person or group.

Win-Win

A situation or outcome where all parties involved gain or achieve benefit.