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Relationship of surplus to premiums

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1. Do you think that loss adjustment would be most difficult in the field of life insurance, property insurance, or liability insurance? What training would you recommend for adjusters in each of these three fields?

2. "Pricing is more difficult in insurance than in other business fields, because the cost of production is not known until after the product has been delivered." To what extent is this statement true and to what extent false?

3. "In view of the relationship of surplus to premiums that may be written, a severe decline in the stock market is likely to serve as a brake on price-cutting practices." Explain the rationale behind this observation.

Reference no: EM131628229

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