Lines of insurance in which claims are settled relatively quickly are called:
Click on the arrows to vote for the correct answer
A. B. C. D.D
In the context of insurance, the term "tail" refers to the duration between the occurrence of an insured event and the final settlement of claims related to that event. The question is asking about lines of insurance where claims are settled relatively quickly, indicating a shorter duration for claim settlement.
The correct answer is D. Short-tail lines.
Short-tail lines of insurance are characterized by a relatively short duration between the occurrence of an insured event and the resolution of associated claims. Typically, these lines involve insurance coverages where claims are reported and settled quickly. The settlement process for short-tail lines is relatively efficient and straightforward, resulting in a prompt resolution for policyholders.
Examples of short-tail lines of insurance include property insurance, such as homeowners or automobile insurance, where claims arising from covered events like theft or property damage can be resolved within a relatively short period. Additionally, certain liability coverages, such as general liability insurance, can also fall under short-tail lines because claims arising from covered incidents are typically settled relatively quickly.
The other answer options provided in the question are not accurate:
A. Quick-tail lines: This answer choice does not correspond to a recognized term in the insurance industry. It appears to be a made-up term and does not reflect an actual classification of insurance lines.
B. Single-tail lines: This answer choice is also not a recognized term in the insurance industry. It does not accurately describe lines of insurance that settle claims quickly.
C. Acceptance-tail lines: Similar to the previous options, this answer choice does not reflect a recognized term in insurance. There is no established meaning for "acceptance-tail lines" in the context of insurance claims settlement.
Therefore, the correct answer is D. Short-tail lines, which represents lines of insurance where claims are settled relatively quickly, resulting in a shorter duration between the occurrence of an insured event and the final resolution of associated claims.