Property Insurance Companies Protect Themselves Against the Extensive Damage Caused

question 50

Multiple Choice

Property insurance companies protect themselves against the extensive damage caused by hurricanes and earthquakes by:

• A) selling thousands of policies to different homeowners.
• B) factoring the cost into the price of the policies.
• C) buying reinsurance against such catastrophes.
• D) declaring bankruptcy when the need arises.

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Definitions:

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Functionality

The range of operations that can be performed by a product or a system, especially in terms of its practical use and performance capability.

Conformance

Adherence to a set of standards, specifications, or regulations designed to ensure quality and compliance in products or services.

Capital Equipment

Long-term assets, such as machinery or buildings, used in the production of goods or services.