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:

Cascading Reactions

A series of sequential chemical or biochemical reactions where the product of one reaction becomes the reactant of the next, often leading to complex outcomes.

Positive Feedback

A process in which the end products of an action cause more of that action to occur in a feedback loop.

Innate Immunity

The primary protection in the immune system, which includes physical, chemical, and cellular responses to pathogens and is innate from the moment of birth.

Allergen

A normally harmless substance that provokes an immune response in some people.