3-79 Factors That Affect the Predictability of Claims Loss Exposure

question 31

Multiple Choice

3-79 Factors that affect the predictability of claims loss exposure include

• A)unexpected increases in inflation.
• B)the frequency and severity of loss.
• C)the concept of long-tail risk.
• D)property versus liability coverage.
• E)All of the above.

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Definitions:

Rooting Reflex

An innate reflex in infants, which is a response to touching the cheek, causing the baby to turn their head toward the stimulus as if searching for food.

Voluntary

Refers to actions or operations performed by an individual's choice, free from external compulsion or coercion.

Conservation of Number

A cognitive developmental milestone reached by children, usually by age 7, where they understand that the quantity of an item remains the same despite changes in its shape or arrangement.

Adjacent

Situated near or next to something else, typically with the implication of being directly neighboring or touching.