Principios Generales de SegurosPregunta 223 de 531
A roofing contractor with three large liability claims shops hard for coverage while claim-free roofers renew quietly. An underwriter who prices the whole class alike is exposed to:
a.adverse selection, drawing worse risks at an average price
b.moral hazard, since the poor risks may stage their claims
c.a catastrophe exposure, since one storm strikes every roofer
d.the law of large numbers, which levels the results out again
Explicación
Adverse selection is the tendency of applicants with a higher-than-average chance of loss to seek insurance most eagerly, so a single average price attracts the worst risks and repels the best. Underwriting and classification exist to counter it. Moral hazard is a different problem: dishonesty by an insured who wants a loss to happen, not a pricing distortion in who applies.
Practica las 531 preguntas gratis — sin registro.
Own the complete California Property & Casualty Broker-Agent guide — PDF + EPUB, $24.99 →
Preguntas relacionadas de este tema
- An insurance contract is described as a contract of adhesion. This means:
- A restaurant owner faces the chance that a kitchen fire destroys the building and the chance that a second location earns or loses money. An underwriter will consider only the fire exposure because:
- An insurer that writes 60,000 similar small commercial buildings predicts its yearly fire losses far more closely than one writing 600. The reason is:
- A survey of an older warehouse finds brittle wiring and a blocked exit door. In insurance terms these two conditions are:
- A trucking firm carries a large self-insured retention because minor cargo scuffs happen weekly and each one costs very little. This choice is best described as:
- Which characteristic of a loss exposure makes it hard for a private insurer to insure?
Última revisión: · proceso editorial
Equipo de PrepPass · Verificado con California Property & Casualty Insurance License Exam · Cómo revisamos