Which of the Following Statements Is True About Nonadmitted Coverage

question 15

Multiple Choice

Which of the following statements is true about nonadmitted coverage?

• A)They are written by companies authorized to write insurance in the country where a risk exposure is located.
• B)They use the country's currency for premiums and claims.
• C)Premiums are tax deductible in countries where nonadmitted coverage is permitted.
• D)If they are prohibited in a country, claim payments must be made directly to the local subsidiary.
• E)They use English, utilize terms and conditions familiar to U.S.risk managers, and provide flexibility in underwriting.

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Definitions:

External Adaptation

The process through which an organization responds and adjusts to changes in its external environment, including markets, regulations, and cultural shifts.

Organizational Socialization

The process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization.

Encounter Phase

A stage in the organizational socialization process where new employees experience the realities of their job and the organization.

Anticipatory Socialization

The process of preparing for future changes in roles or norms, often through rehearsal or simulation.