Severity vs. Frequency looks at the loss rate that is more predictable on low severity, high frequency lines of insurance than it is on high severity, low frequency lines. Which of the examples below can best be used to determine the loss rate for a high severity, low frequency line of insurance. a. The COVID 19 pandemic which significantly affected nearly all segments of countries globally. b. A significant tropical storm which does extensive damage to farmlands. c. A catastrophic hurricane that is rated as a category 2 or above. d. A severe forest fire which frequently occurs during the summer months.
Severity vs. Frequency looks at the loss rate that is more predictable on low severity, high frequency lines of insurance than it is on high severity, low frequency lines. Which of the examples below can best be used to determine the loss rate for a high severity, low frequency line of insurance. a. The COVID 19 pandemic which significantly affected nearly all segments of countries globally. b. A significant tropical storm which does extensive damage to farmlands. c. A catastrophic hurricane that is rated as a category 2 or above. d. A severe forest fire which frequently occurs during the summer months.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Severity vs. Frequency looks at the loss rate that is more predictable on low severity, high frequency lines of insurance than it is on high severity, low frequency lines. Which of the examples below can best be used to determine the loss rate for a high severity, low frequency line of insurance.
a.
The COVID 19 pandemic which significantly affected nearly all segments of countries globally.
b.
A significant tropical storm which does extensive damage to farmlands.
c.
A catastrophic hurricane that is rated as a category 2 or above.
d.
A severe forest fire which frequently occurs during the summer months.
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