XYZ Insurance Company writes coverage for most perils which can damage property. XYZ, however, does not write flood insurance on property located in flood plains
Which requirement of an ideally insurable risk might be violated if XYZ wrote flood insurance on property located in flood plains?
A) There must be a large number of similar exposure units.
B) The loss should not be catastrophic.
C) The chance of loss must be calculable.
D) The losses must be determinable and measurable.
Answer: B
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The early effects of an advertising campaign may be minimal, but over time gain momentum. This phenomenon is called:
A) diminishing returns B) threshold effects C) the sales-response curve D) carryover effect
Which buyer behavior theory focuses the salesperson's attention on five important factors that the customer is likely to consider before making a purchase?
A) buyer-action theory B) compulsive-buying theory C) need-satisfaction theory D) buyer-resolution theory E) feature-benefit theory