Author Question: The property and liability insurance industry fluctuates between periods of increasing insurance ... (Read 65 times)

karateprodigy · **on:** Jul 11, 2018

The property and liability insurance industry fluctuates between periods of increasing insurance rates and tight underwriting standards,

and decreasing insurance rates and loose underwriting standards. Profitability in the industry follows these cyclical movements. What is this pattern of fluctuations called?
A) the claims cycle
B) the underwriting cycle
C) the business cycle
D) the accounting cycle

Question 2

David never stopped to consider the possible consequences of a long-term, permanent, disability. So David did not include disability income insurance in his personal risk management program. David is dealing with the risk of disability through

A) passive retention.
B) active retention.
C) risk control.
D) risk avoidance.