Huge Insurance Company Is a Property Insurer That Is Interested

question 39

Multiple Choice

Huge Insurance Company is a property insurer that is interested in protecting itself against cumulative losses that exceed $200 million during the year.This protection can best be obtained using a(n)

• A)quota-share reinsurance treaty.
• B)surplus-share reinsurance treaty.
• C)excess-of-loss reinsurance treaty.
• D)reinsurance pool.

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Definitions:

Anti-Chain-Store Act

Legislation aimed at limiting or regulating the expansion and operation of chain stores to protect local businesses and maintain market competition.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service based on characteristics other than the customer's willingness to pay.

Direct Price Discrimination

The practice of charging different prices to different consumers for the same product or service, based directly on the willingness to pay of each customer.

Cannibalizing

In business, the reduction in sales of a product due to the introduction of a similar product by the same company.