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:

Economies of Scale

Cost benefits acquired by businesses due to the size of their operations, which causes a decrease in the cost per output unit as the operation's scale increases.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over those of competitors.

Interest Rate Schedules

Tables or charts detailing the interest rates applicable for various financial products or loans over time.

Markup Pricing

A pricing strategy where a fixed percentage is added to the cost of goods to cover expenses and profit.