Question

Which of the following is an example of ‘short tail’ class of business?

a.

Property

b.

EAR

c.

Marine

d.

Liability

Posted under IC85 Reinsurance Management

Answer: (a).Property Explanation:In the given options, the class of business that falls under the category of "short tail" is property. Short tail refers to insurance lines where the claims are typically settled relatively quickly and the duration between policy inception and claim settlement is relatively short. Property insurance involves covering risks related to physical property, such as buildings, homes, and belongings, and the claims in property insurance are generally resolved in a shorter time frame compared to other classes of business like EAR (Erection All Risks), Marine, and Liability.

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Q. Which of the following is an example of ‘short tail’ class of business?
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