Which of the insurance lines listed below will be charged a higher premium by insurance companies and

Question:

Which of the insurance lines listed below will be charged a higher premium by insurance companies and why? (LG 15-6)

a. Low-severity, high-frequency lines versus high-severity. low-frequency lines.

b. Long-tail versus short-tail lines.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

See More Books

Question Posted: Jul 24, 2024 06:00 AM

See More Questions

You have the following frequency distribution of the Travel Time to work for residents in South Beach neighborhood. Please answer the questions that follow after the Frequency Table. Travel Time a....
After looking at a fixed-rate loan, Ace-Campbell Mfg. entered into a floating-rate loan agreement. This loan is set at 40 basis points (or .40 percent) over an index based on LIBOR. Ace-Campbell is...
"Metadata make databases easy to use for both authorized and unauthorized purposes." Explain what organizations should do in light of this fact. LO.1
Explain the advantages and disadvantages of entering global markets.
Assuming the cost of an associate leaving within 90 days is $3,000, what will be your facility's approximate cost of early turnover for this year? Year-to-Date Turnover Avg. Head- count Total < 90...
1. (5 pts) There are three viable investment options for your company. The company can invest in none, any, or all of them. With a MARR of 9%, which ones (ifany) would you recommend? All figures are...
How do increases in unexpected inflation affect P&C insur- ers? (LG 15-5)
Calculate the following: (LG 15-2) a. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a...
Perpetual Life Corp. has issued consol bonds with coupon payments of $60. (Consols pay interest forever and never mature. They are perpetuities.) a. If the required rate of return on these bonds at...
Explain the role of indexing strategies in relational databases, emphasizing the trade-offs between various indexing techniques such as B-tree, hash, and bitmap indexing .
CMS seeks comments on its policies and programs The agency says it hopes to enhance health equity solutions and gain insight into provider experiences and healthcare workers' needs. The Centers for...
The current COVID-19 pandemic has produced many examples of teamwork. Provide a few examples of where that teamwork has followed many of the positive factors we have discused. Why do you think they...
Explore the advancements in database encryption methodologies, including homomorphic encryption and differential privacy, and their implications for preserving data confidentiality in cloud-based...
How does database normalization facilitate the elimination of redundancy and ensure data integrity in complex relational schemas ? Explain
A 200-MHz left-hand circularly polarized plane wave with an electric field modulus of 5 V/m is normally incident in air upon a dielectric medium with r = 4 and occupying the region defined by...
Use the graphs of f and g to graph h(x) = (f + g) (x). To print an enlarged copy of the graph, go to MathGraphs.com. 1. 2. y 24 8. 2. -2 -2 4 6
During 2022, the Sunny Days Corporation issued 40,000 common shares in order to raise funds for expansion. This transaction is an example of which of the following types of business activity?...
Comfort Inc. ' s income statement and balance sheet for 2 0 2 0 are presented below. COMFORT INC. Income Statement Year Ended December 3 1 , 2 0 2 2 Sales $ 6 0 0 , 0 0 0 Cost of Goods Solds:...
A financial planner is examining the portfolios held by several of her clients. The portfolios are described below. Identify which portfolio is likely to have the smallest standard deviation. A...

Which of the insurance lines listed below will be charged a higher premium by insurance companies and

Question:

Step by Step Answer:

Financial Markets And Institutions

Students also viewed these Business questions