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:

Cognitive Distortion

Patterns of thinking that are biased, irrational, or inaccurate, often leading to misinterpretation of reality and negatively impacting mental health.

Bulimia

An eating disorder characterized by episodes of binge eating followed by purging to try to control weight.

Overgeneralization

A cognitive distortion where an individual applies a general rule too broadly, often evident in language acquisition or in forming beliefs about the world based on limited experiences.

Psychoanalytic Approach

A method of psychological theory and therapy that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.