Mutual Entities, Reciprocal or Inter-Insurance Exchanges, Public Entity Risk Pools

question 334

Multiple Choice

Mutual entities, reciprocal or inter-insurance exchanges, public entity risk pools are all principal kinds of:

• A) Property and expense insurance organizations
• B) Feasibility and performance assurance organizations
• C) Property and liability insurance organizations
• D) Building and asset related organizations

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Definitions:

Surplus

The amount of a good that is available exceeds the quantity demanded at the current price.

Price

Price is the amount of money required to purchase a good or service, determined by factors such as supply and demand, production costs, and market competition.

Surplus

Surplus refers to the situation where the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service and the actual price they receive, reflecting the profit earned above production costs.