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unemployment, and factory production are explicitly
modeled.
(ii) Relationships - The insurance correlations with
these economic attributes are formulated. Some of
these relationships are obvious, whereas some of
them are indirect.
For e.g, prosperous economic times lead to increased
business activity. Less experienced workers are
hired, overtime hours increase and workers'
compensation claim frequency rise. People purchase
more vehicles or goes out more for vacations thereby
increasing the business. Recessions usually have the
opposite effects.
The ill/injured workers generally are reluctant to
give up their disability benefits for fear of being
eliminated by workforce reduction. Though there
is a decline in workers' compensation claim
frequency, there is a lengthening of the time spent
on disability by already ill/injured workers.
(iii) Sensitivity - The magnitude of the insurance
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