Which of the Following Statements Are True in the Context

question 52

Multiple Choice

Which of the following statements are true in the context of general insurance?

• A)Loss rates on all general property policies are adversely affected by unexpected increases in inflation.
• B)Long-tail losses arise where the peril occurs during a coverage period but a claim is not made until many years later.
• C)Long-tail losses arise where the peril occurs during a coverage period but a claim is not made until many years later and loss rates are more predictable on low-severity high-frequency lines than on high-severity low-frequency lines.
• D)Loss rates on all general property policies are adversely affected by unexpected increases in inflation; long-tail losses arise where the peril occurs during a coverage period but a claim is not made until many years later and loss rates are more predictable on low-severity high-frequency lines than on high-severity low-frequency lines.

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Definitions:

Superior Mesenteric Artery

A major artery that supplies blood to the intestines, including parts of the stomach, pancreas, and the lower portion of the esophagus.

Small Intestine

A long, coiled section of the gastrointestinal tract where most digestion of food and absorption of nutrients occurs.

Cecum

Cul-de-sac forming the first part of the large intestine.

Renal Arteries

Blood vessels that supply the kidneys with blood, enabling them to filter waste products from the blood to produce urine.