The aggregate increased costs to society of operating the insurance mechanism includes all of the following except: A) cost of operating the insurance company B) losses due to uninsured flood losses C) the occurrence of intentional losses to collect insurance D) the tendency of insureds to exaggerate the amount of actual losses in the claim process

Question

Quizplus · Accepted Answer

The question asks for an option that is not an increased cost to society of operating the insurance mechanism. Options A, C, and D all lead to increased costs, but uninsured flood losses do not directly relate to the operation of the insurance mechanism.

The Aggregate Increased Costs to Society of Operating the Insurance