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Is the Insurer Death Spiral Applicable to Tornado Insurance

Question 38

Multiple Choice

Is the insurer death spiral applicable to Tornado Insurance?


A) Yes, only people in a limited number of states are susceptible to tornadoes.
B) Yes, Tornado Insurance premiums are extremely high.
C) No, the desire to purchase Tornado Insurance is not limited to a small group of consumers.
D) No, there is a definite loss capable of causing economic hardship.

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