Public Health Nursing Practice Exam

What factor has significantly increased insurance payouts after disasters in the U.S.?

1. El Niño effects on climate.

2. Human development in vulnerable areas.

3. Advancements in meteorological technology.

4. Natural disasters caused by geography.

The correct answer is: Human development in vulnerable areas.

Human development in vulnerable areas has significantly increased insurance payouts after disasters in the U.S. This is primarily because as populations grow and development expands in at-risk regions—such as coastal areas, flood plains, or areas prone to wildfires—there is a greater concentration of property and infrastructure that can be damaged during disasters. As more homes, businesses, and critical infrastructure are built in these vulnerable locations, the potential for loss becomes higher during natural disasters. Consequently, insurance companies face increased claims, leading to larger payouts in the aftermath of disasters. Additionally, the rise in population density exacerbates the impact of these events, resulting in more comprehensive financial consequences for insurers. In contrast, while climate phenomena and geographical factors play roles in the occurrence of natural disasters, they do not directly correlate to the rise in insurance payouts as strongly as human development does. Advancements in meteorological technology can improve disaster prediction and management but do not inherently lead to increased payouts; they may even serve to mitigate losses through better preparedness. Each of these other factors contributes to the overall context of disaster responses but does not capture the primary reason for the rising insurance costs as effectively as human development in vulnerable areas does.