What does a product model describe in the context of insurance?

A product model in the context of insurance serves as a blueprint for how an insurance product is structured and configured within a system. This includes defining the various components that make up the product, such as coverage options, limits, deductibles, and pricing structures. It lays out the specific rules and principles that govern the product's behavior and how it interacts with clients and other system components.

By detailing how a product is configured, the product model enables insurance companies to tailor offerings to meet regulatory requirements, market demands, and company policies. This ensures that the products provided are compliant and competitive while also allowing for efficient management of policies and claims within the insurance system. The correct choice emphasizes the importance of configuration in delivering a comprehensive insurance solution, while other options focus on aspects that are influenced by the product model rather than describing it directly.