The property and liability insurance industry is characterized by ...

[09madisonrousseau09]

The property and liability insurance industry is characterized by a repetitive pattern of loose underwriting standards with low premiums followed by tight underwriting standards with high premiums. This repetitive pattern is called the
 
  A) underwriting by exception method.
  B) business cycle.
  C) underwriting cycle.
  D) account underwriting method.

Question 2

Mid-States Beef is a commercial feedlot business. Currently, the company has over 10,000 cattle in feedlots. Mid-States is concerned that the price of corn, the grain fed to the cattle, will increase significantly.
 
  The risk that the price of corn may increase and harm the profitability of Mid-States Beef's operations is a(n)
  A) currency exchange rate risk.
  B) property risk.
  C) commodity price risk.
  D) interest rate risk.

[Dunkey]

Answer to Question 1

Answer: C

Answer to Question 2

Answer: C

[09madisonrousseau09]

Correct answers!

[Dunkey]

Great! Please up vote