Which statement is (are)true regarding property and liability insurance market conditions?
I.Premiums are high when the insurance market is "hard."
II.Underwriting standards are tight when the insurance market is "soft.
A)I only
B)II only
C)both I and II
D)neither I nor II

Question

Quizplus · Accepted Answer

I is true because in a "hard" insurance market, premiums are high due to decreased competition and tighter underwriting standards. II is false because in a "soft" market, underwriting standards are generally looser, and premiums are lower due to increased competition.

Which Statement Is (Are)true Regarding Property and Liability Insurance Market