To Lessen the Impact of Catastrophic Losses, Many Insurers Use

question 36

Multiple Choice

To lessen the impact of catastrophic losses, many insurers use all the following except:

• A) contingent surplus notes
• B) catastrophe bonds
• C) forward purchase options
• D) exchange traded options

---

Definitions:

Attitude Polarization

The phenomenon by which an individual's stance on an issue becomes more extreme after considering evidence or arguments.

Show Attitude

The demonstration of one's feelings, beliefs, or disposition through verbal and non-verbal forms of expression.

Biased Manner

A way of acting or making decisions that is influenced by prejudices or partiality, rather than being fair or impartial.

Outgroup Members

Individuals who are perceived as not belonging to one's own group, often leading to biases or prejudgment against them due to perceived differences.