BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The company assesses the individual’s risk factors and assigns higher premiums to higher risk individuals
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The company looks at the individual’s tax filings from the previous year to assess overall wealth and ability to pay
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The company charges the same premium for every individual eligible for coverage
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The company increases or decreases premium rates based on the stock market
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Detailed explanation-1: -The amount that you pay is based on your age, the type of coverage that you want, the amount of coverage that you need, your personal information, your ZIP code, and other factors.
Detailed explanation-2: -Insurance premiums depend on a variety of factors including the type of coverage being purchased by the policyholder, the age of the policyholder, where the policyholder lives, the claim history of the policyholder, and moral hazard and adverse selection.
Detailed explanation-3: -Actuaries base life insurance premiums on three factors: mortality, interest, and expenses: Mortality is the risk of death posed by the applicant. It is a charge. Interest is the amount the insurer can expect to earn on invested premiums.
Detailed explanation-4: -Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.