Premiums Received Before the Coverage Period Are Termed

question 7

Multiple Choice

Premiums received before the coverage period are termed

• A)unearned premiums.
• B)lagged premiums.
• C)loss-adjustment expenses.
• D)loss reserves.
• E)policyholder's surplus.

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Definitions:

Demand Function

A mathematical equation that describes the quantity of a good that consumers are willing and able to purchase at various prices.

Subsidy

Financial assistance granted by a government or other institution to lower the cost of producing goods or services or to support consumers directly.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in its price, with elasticity greater than one indicating a high sensitivity to price changes.

Supply Elasticity

A measure of how much the quantity supplied of a good changes in response to a change in price.