Podcast
Questions and Answers
What are the two main costs to society of operating an insurance system?
What are the two main costs to society of operating an insurance system?
- Cost of the resources utilized and increased losses due to attitudinal hazards
- Cost of labor and capital investment, and increased losses due to attitudinal hazards
- Cost of the resources utilized by the system and costs arising from increased losses due to attitudinal and moral hazards (correct)
- Cost of the resources utilized and increased losses due to moral hazards
Which of the following is NOT a cost associated with operating an insurance system?
Which of the following is NOT a cost associated with operating an insurance system?
- Cost of labor
- Increased losses due to attitudinal hazards
- Reduced crime rates (correct)
- Cost of capital investment
Why can insurance sometimes lead to increased losses according to the text?
Why can insurance sometimes lead to increased losses according to the text?
- Insurance introduces more legal complexities
- Insurance encourages risk-taking behavior (correct)
- People feel more secure knowing they are insured
- Insurance systems are not efficient
What is an example given in the text to illustrate the impact of insurance on criminal behavior?
What is an example given in the text to illustrate the impact of insurance on criminal behavior?
How do attitudinal hazards contribute to the costs of operating an insurance system?
How do attitudinal hazards contribute to the costs of operating an insurance system?
Within how many calendar days must an insurer respond to a claim in writing?
Within how many calendar days must an insurer respond to a claim in writing?
What is the exception to the 40-day claim response requirement?
What is the exception to the 40-day claim response requirement?
What must an insurer provide to the claimant if the claim is denied?
What must an insurer provide to the claimant if the claim is denied?
What is the purpose of the written notice every 30 calendar days?
What is the purpose of the written notice every 30 calendar days?
When must an insurer provide written notice with an explanation to the claimant?
When must an insurer provide written notice with an explanation to the claimant?
Flashcards are hidden until you start studying
