As a result of frequent flooding,the insurance market has noted a positive correlation between flooding and the amount of insurance monies paid out for such floods.Holding demand for insurance constant,if flooding is expected to continue to be a problem,flood insurance premiums will MOST likely:
A)rise.
B)fall.
C)stay the same.
D)rise,fall,or stay the same.

Question

Quizplus · Accepted Answer

Due to the positive correlation between flooding and insurance payouts, insurance companies will likely increase premiums to compensate for the increased risk of payouts.

As a Result of Frequent Flooding,the Insurance Market Has Noted