The Aggregate Increased Costs to Society of Operating the Insurance

question 9

Multiple Choice

The aggregate increased costs to society of operating the insurance mechanism includes all of the following except:

• A) cost of operating the insurance company
• B) losses due to uninsured flood losses
• C) the occurrence of intentional losses to collect insurance
• D) the tendency of insureds to exaggerate the amount of actual losses in the claim process

---

Definitions:

Sequencing

The arrangement of objects, tasks, or events in a particular order or sequence.

Ethical

Being ethical involves adhering to accepted principles of right and wrong that govern the conduct of a profession or the individual.

Deliberate Machiavellianism

The strategic and sometimes manipulative behavior aimed at achieving personal or organizational goals by whatever means necessary, often without regard for ethics or morality.

Upward Appeal

A means of influence in which the leader enlists a person with more formal authority to do the influencing.