Coverage of Risks That Do Not Fit Normal Underwriting Patterns

question 85

Multiple Choice

Coverage of risks that do not fit normal underwriting patterns and that are not commensurate with standard rates is normally refers to as:

• A) Surplus lines
• B) Commercial lines
• C) Risk lines
• D) Standardized lines

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Definitions:

Price of Labor

Refers to the wages or compensation that workers receive in exchange for their labor or services provided.

Labor Market

The market in which individuals offer their labor for employment and employers seek to hire labor.

Bilateral Monopoly

Market with only one seller and one buyer.

Bargaining Power

The relative capacity of parties in a negotiation to exert influence on each other, often influencing the terms and conditions of agreements.