Which of the Following Are Reasons for Underwriting Risk to Result

question 57

Multiple Choice

Which of the following are reasons for underwriting risk to result?

• A)Generated premiums are insufficient to cover claims incurred insuring a particular peril.
• B)Generated premiums are insufficient to cover the administrative expenses of providing that insurance after taking into account the investment income generated between the time premiums are received and the time claims are paid.
• C)Generated premiums are insufficient to cover ordinary business expenses.
• D)Generated premiums are insufficient to cover claims incurred insuring a particular peril and generated premiums are insufficient to cover the administrative expenses of providing that insurance after taking into account the investment income generated between the time premiums are received and the time claims are paid.

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Definitions:

Moral Anxiety

Anxiety that arises from internal conflicts between what one wants to do and what one considers to be the right or moral action to take.

Psychoanalytic Theory

A theory developed by Sigmund Freud that emphasizes unconscious processes and childhood experiences as the primary factors in personality development and psychological issues.

Internalized

The process of integrating attitudes, values, or norms into one's own belief system or behavior.

Countertransference

The emotional reaction of a therapist towards a client, influenced by the therapist's own background, beliefs, and experiences.