ABC Insurance Company calculated the amount that it expected to pay in claims for each policy sold.
Rather than selling the insurance for the amount it expected to pay in claims, ABC added an allowance to cover the cost of doing business, including commissions, taxes, and acquisition expenses. This allowance is called a(n)
A) policyowner dividend.
B) premium.
C) expense loading.
D) rate credit.
Question 2
Gina would like to buy a house. She will pay 10 percent of the cost of the house as a down payment and borrow the other 90 percent from a mortgage lender. The home will serve as collateral for the loan.
The lender will not make the loan to Gina unless the home is insured. Using insurance to secure the collateral for a loan illustrates which of the following benefits of insurance to society?
A) enhancement of credit
B) reduction of fear and worry
C) source of investment funds
D) incentives for loss prevention
Cross-sectional data showing that the amount of effort spent on personal health care increases with
Sample of an insurance card.
The environmental policy changes over time
Expected Distribution of IQ Scores
A company spends $117 500 today and has positive cash inflows of $34 000 for each of the next 6 ...
Bateson and Punnett’s Observed and Expected Phenotypes in F2 Sweet Peas