"Subsidization" in an Insurance Pool Means

question 24

Multiple Choice

"Subsidization" in an insurance pool means:

• A) the bad risks pay more for insurance than good risks
• B) the premiums collected by the insurers don't adequately cover the losses experienced by the pool
• C) those who experience losses have their premiums raised
• D) exposures that should be charged higher insurance rates are averaged in a pool so that the good as well as bad exposures pay the same rate

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Definitions:

Proximodistal Principle

Principle that development proceeds from within to without, that is, that parts of the body near the center develop before the extremities.

Proximodistal

Refers to the pattern of development that moves from the center or core of the body outward towards the extremities.

Cephalocaudal

A pattern of growth and development in which progress is made from the head downward, typically observed in infants.

Maturational

Pertaining to the process of maturing or developing to a more advanced stage, often in the context of biological or psychological growth.