Which of the Following Statements About the Insurer Death Spiral

question 46

Multiple Choice

Which of the following statements about the insurer death spiral is not correct?

• A) The insurance pool is shrinking to those who really need insurance.
• B) The remaining policyholders are not susceptible to the peril being insured.
• C) The insurance pool is shrinking to those who are facing high risk.
• D) The insurance premium that needs to be paid is very high.

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Definitions:

Premium

A premium refers to the additional amount above the normal cost or nominal value of a product, service, or insurance coverage, often indicating a higher quality or level of service.

Global Market Segmentation

The process of dividing the worldwide market into distinct subsets of consumers with common needs or characteristics for targeted marketing.

Product Offerings

The various products and services a company makes available to customers.

Position

Refers to a brand's or product's unique standing and identity in the marketplace relative to its competitors.