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IDENTIFICATION: What area of insurance companies is faced with the
risk that estimates of loss reserves may not be
reasonable?
Step by step
Solved in 2 steps
- why is it important for insurance companies to manage underwriting risk?Which of the following is not an insurance management tool? Group of answer choices deductibles. screening of applicants. limits on insurance. restrictive covenants. signalling.Who are front-line underwriters? What are premium volume and loss experience with the insurer? What is monitoring of underwriting decisions?
- explain what The decline of insurance as a risk-financing technique is and give exampleswhat is one example of a risk management strategy used by insurance companies to mitigate underwriting risks?Underwriting risk results when the premiums generated on a given insurance product line are insufficient to cover all of the following EXCEPT: a.All of the above. b.Increased premiums. c.Increased expenses. d.Increased claims.
- The _______________ problem is when customers who are most likely to have a claim against an insurance company are those quickest to apply for an insurance contract. Group of answer choices a. Capital adequacy b. Default risk c. Adverse selection d. Mismatched maturityIf the chance that a risk will occur cannot be reasonably predicted or the possible financial loss to the business calculated, it will be unlikely that an insurance company will provide coverage. True or FalseIdentify and explain ONE key financial risk that an insurance company is exposed to. Explain the policies and procedures an insurance company put in place to mitigate the exposure of the said risk.
- ASAP When an insurer accepts accepts risk from a large number of enrollees.OA. the average loss that will be incurred by the insurer becomes much less predictableOB. the average loss that will be incurred by the insurer becomes much more predictable.OC. the average loss that will be incurred by the insurer can be calculated with certainty.O D.the average loss that will be incurred by the insurer becomes impossible to predict.Which is not an essential characteristic of an insurance contract? A. transfer of significant risk from the issuer to the policyholder B. policyholder pays the issuer for the transfer of risk C. issuer indemnifies the policyholder for losses when the insured event occurs D. none of the aboveIt pertains to a risk management technique when acquiring a life insurance. *risk avoidancerisk retentionrisk transferanswer not given