For Reinsurance Assumed, the Concepts Analogous to Attachment Points and Limits

question 35

Multiple Choice

For reinsurance assumed, the concepts analogous to attachment points and limits are referred to as

• A) Severity Levels
• B) Frequency Levels
• C) Policy levels
• D) Retention levels

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Definitions:

Equilibrium Price

Equilibrium Price is the price point at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Water Ski Boats

Boats specifically designed and equipped to create a wake suitable for water skiing and other water sports.

Demand for Water Skis

The desire and willingness of consumers to purchase water skis at various price levels, holding all other factors constant.