There Are Four Basic Components of an Insurance Premium

question 14

Multiple Choice

There are four basic components of an insurance premium. Which of the following is not one of those components?

• A)losses suffered by the members of the insurance pool
• B)law of large numbers
• C)an allowance for unexpected losses
• D)earnings on investments

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Definitions:

Washington Think-Tanks

Research institutes located in Washington, D.C., that provide analysis and advice on public policy issues to both government and the public.

Military Expenditure

The amount of financial resources dedicated by a nation to maintaining and enhancing its armed forces and defense capabilities.

World's Population

The total number of living humans on Earth at any given time.

Charismatic Authority

A form of leadership where followers attribute extraordinary abilities or qualities to a leader, often leading to high levels of devotion and loyalty.