Cognitive Abilities Test (CAT4) Practice Exam

In the insurance market cycle, a 'hard market' is best characterized by which of the following?

Companies are in rapid growth mode. Companies relax their underwriting guidelines to attract business. Companies restrict coverage availability and tighten underwriting standards. Premium rates decrease across the industry.

Correct Answer:

Companies restrict coverage availability and tighten underwriting standards.

Explanation:

A hard market is best described as a period when insurance companies restrict coverage availability, tighten underwriting standards, and generally increase premiums.

Access more questions from this quiz

Continue to Cognitive Abilities Test (CAT4) Practice Exam for more practice questions and the full quiz experience.

Access More Questions