In Return for Accepting the Variability in Outcomes (Risk) of Insureds

question 18

Short Answer

In return for accepting the variability in outcomes (risk) of insureds, the insurer receives a(n) _____.

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Definitions:

Vertical Control

The management and oversight of an organization's activities and processes through a hierarchical structure, from top-level management down to front-line employees.

Feedback Control

A mechanism by which a system regulates itself by monitoring its own output to make adjustments and achieve desired results.

Quality Control

The process of ensuring that products and services meet customer expectations through systematic measurement and regulation of production processes.

Feedforward Control

A management technique that involves collecting and analyzing performance data in advance of an action, allowing for preemptive adjustments to improve outcomes.