BUISENESS MANAGEMENT
INSURANCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
If a large pool of people pay premiums, insurance company employees will get more bonuses included in their next paycheck.
|
|
|
The premium payments of all the insured clients will cover the costs for the emergencies of the few who need it.
|
|
|
The more people that pay premiums, the less likely each insured client will experience an emergency.
|
|
|
A large pool of people paying premiums yields insurance companies to have a larger social media following.
|
Detailed explanation-1: -An insurance company pools in collective risks and premiums because it covers a large number of risk-exposed people. The payout to the one who claims insurance coverage is out of this fund. Thereby, all policyholders share the risk of the one who actually suffered the loss.
Detailed explanation-2: -risk pooling in Insurance Risk pooling allows an insurance carrier to provide an income stream via an immediate annuity, even with its costs and expenses, far more cheaply than a person could on his or her own. Risk pooling is the practice of sharing all risks among a group of insurance companies.
Detailed explanation-3: -together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category. In general, the larger the risk pool, the more predictable and stable the premiums can be.
Detailed explanation-4: -Once earned, the premium is income for the insurance company. It also represents a liability, as the insurer must provide coverage for claims being made against the policy. Failure to pay the premium on the individual or the business may result in the cancellation of the policy.
Detailed explanation-5: -Insurance plans will help you pay for medical emergencies, hospitalisation, contraction of any illnesses and treatment, and medical care required in the future. The financial loss to the family due to the unfortunate death of the sole earner can be covered by insurance plans.