When the use of captives risk retention groups and pools, Operation Management

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When the use of captives risk retention groups and pools

1. When the use of captives, risk retention groups, and pools increases, which of the following decreases?

a- The number of insurer insolvencies

b- The demand for insurance

c- The supply of insurance

d- The availability of reinsurance

2 .In a particular state, the rates for personal auto insurance decrease, but the number of personal auto policies does not increase. This is because:

a- Demand for personal auto insurance is inelastic

b- The supply of auto insurance is inelastic

c-The price for auto insurance is elastic

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Operation Management: When the use of captives risk retention groups and pools

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