West Coast Insurance Writes Property and Liability Insurance in California,Oregon,and

question 34

Multiple Choice

West Coast Insurance writes property and liability insurance in California,Oregon,and Washington.These states are all susceptible to earthquakes.To help determine how much reinsurance to purchase,West Coast Insurance hired an organization to use a computer algorithm to estimate what its insured losses would be if a severe earthquake occurred.West Coast Insurance based its purchase of reinsurance on the loss estimates.This scenario illustrates using

• A)value-at-risk analysis.
• B)catastrophe modeling.
• C)risk mapping.
• D)a risk management information system.

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Definitions:

Tropical Rain Forests

Dense forests found in regions near the equator, characterized by high rainfall and biodiversity.

Internal Criticism

A method in historiography or textual analysis where the authenticity and credibility of a document or source is evaluated.

Valid

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.