Which of the Following Is a Primary Reason That Insurance

question 5

Multiple Choice

Which of the following is a primary reason that insurance consumers are not well-informed?

• A)insurers have not made much effort to inform consumers
• B)the rewards of making informed decisions are not worth the cost of obtaining the needed information
• C)state insurance regulators do not provide the needed information
• D)insurance prices are so low that most consumers do not care to be informed

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Definitions:

Constant

A value that does not change.

Present Value

The present financial value of a sum of money to be received in the future or a series of cash flows, considering a specific return rate.

Annual Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits on a per-share basis each year.

Dividend Growth Model

A model that estimates the value of a company's stock based on its expected future dividends and their growth rate.