All of the Following Are Costs to Society Arising from an Insurance

question 56

Multiple Choice

All of the following are costs to society arising from an insurance system's operation except:

• A) payments for losses caused by fraudulent claims
• B) payments for losses caused by exaggerated claims
• C) use of land, labor and capital to operate the insurance companies
• D) payments for losses caused by windstorms such as tornadoes

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and sell stocks.

Organization Chart

A visual representation of the hierarchical structure of an organization, showing relationships between different positions and departments.

Delegation of Authority

The process by which authority is distributed to lower levels of management within an organization to make decisions and complete tasks.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interests and typically rights to dividends and a vote in corporate matters.