To lessen the impact of catastrophic losses, many insurers use all the following except: A) contingent surplus notes B) catastrophe bonds C) forward purchase options D) exchange traded options

Question

Quizplus · Accepted Answer

Forward purchase options are not commonly used by insurers to mitigate the impact of catastrophic losses. Insurers typically use mechanisms like contingent surplus notes, catastrophe bonds, and exchange traded options to spread or mitigate the risk of large-scale losses.

To Lessen the Impact of Catastrophic Losses, Many Insurers Use