Which of the Following Statements Is True Regarding Insurance Market

question 27

Multiple Choice

Which of the following statements is true regarding insurance market conditions and underwriting results?

• A)A combined ratio greater than one (or 100 percent)indicates profitable underwriting.
• B)In a "soft" insurance market,more retention is used than in a "hard" insurance market.
• C)Insurance rates are high and underwriting standards are tight when the insurance market is "hard."
• D)Property and liability insurance premiums and underwriting standards do not fluctuate over time.

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Definitions:

Knowledge Application

The use of acquired information, understanding, and skills in practical situations to solve problems or achieve objectives.

Online Portal

A website or service that provides access to a wide variety of resources, services, or information, often catered towards specific interests or communities.

Systematic Manner

A methodical and organized approach to tasks or problem-solving, characterized by order and consistency.

Cost-Leadership Strategy

A business approach aimed at becoming the lowest-cost producer in its industry.