Separately Managed Accounts for Pool Members

B

The correct answer is B. claim-serving pools.

Claim-serving pools are arrangements that allow pools to manage separate accounts for each pool member, from which the losses of that member are paid. In other words, each member of the pool has their own account within the pool, and any losses they incur are paid from their own account rather than being shared among all members of the pool.

This type of arrangement is commonly used in insurance and reinsurance. For example, in a reinsurance pool, each member may have their own separate account, and any losses they incur from reinsuring policies are paid from their own account rather than being shared among all members of the pool. This can help to ensure that each member is responsible for their own losses, rather than being held responsible for the losses of others.

Employee pools, on the other hand, refer to arrangements where employers pool their resources to provide employee benefits such as health insurance or retirement plans. Singular entity pools are not a commonly used term in the financial industry and are not related to the management of separate accounts for each pool member.