Question

International insurance claims are generally less than U.S. claims due to:

A) no punitive damages
B) fewer claims
C) international countries are less litigious
D) All of the above
E) None of the above

Answer 1

International insurance claims are typically lower than in the U.S. due to no punitive damages, fewer claims, and less litigious cultures, making the correct answer D) All of the above.

Step-by-step explanation:

International insurance claims are generally less than U.S. claims due to several factors, including the absence of punitive damages in many jurisdictions outside the U.S., fewer claims filed, and because many international countries are less litigious compared to the United States.

Therefore, the correct answer is D) All of the above. Notably, the U.S. legal system is known for its high damages awards, especially in terms of punitive damages, which are intended to punish the defendant for egregious behavior.

Many countries outside the U.S. do not allow for punitive damages, which can significantly reduce the overall awards in insurance claims. Additionally, cultural differences may lead to fewer claims being filed, and the litigious nature of the U.S. contributes to a higher volume of claims and potentially higher claim payouts.