One of the Reasons Higher Prices Will Not Always Increase

question 30

Multiple Choice

One of the reasons higher prices will not always increase the supply of insurance is:

• A)consumers will not buy insurance if prices are increased
• B)the loss and therefore the expense ratio both will increase
• C)the premiums to surplus ratio must be maintained at a reasonable level
• D)the number of insurance contracts written by an insurer is totally regulated

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Definitions:

Proof Statements

Convincing or persuasive statements used in sales and marketing to validate the benefits or effectiveness of a product or service.

Premium Approach

An approach in which the salesperson offers a prospect something as an inducement to buy.

Bulk Purchases

The act of buying goods or commodities in large quantities, often at a discount, mainly for commercial purposes.

Sales Approach

The sales approach is a strategy or method used by sales professionals to engage potential clients and persuade them to purchase a product or service.