Why Is There Unequal Knowledge and Bargaining Power in the Insurance

question 38

Multiple Choice

Why is there unequal knowledge and bargaining power in the insurance transaction?

• A)the complexity of the insurance contract and the intangible nature of the product
• B)the insurance companies want to confuse consumers so it is difficult to make choices
• C)consumers do not receive the policy until months after the contract goes into effect
• D)there is no competition in the industry, therefore the consumer is stuck with inferior products

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Definitions:

Coworkers

Individuals who work together in the same organization or on the same team.

Transparent

Characteristics of an object or process that is easily seen through or understood, often used metaphorically to describe openness and honesty in communication.

Engagement

The degree of enthusiasm and dedication an individual exhibits towards their work or activities, often leading to higher productivity and satisfaction.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something.