Which of the Following Is Not a Benefit of Standard

question 10

Multiple Choice

Which of the following is not a benefit of standard policies?

• A)smaller insurers can offer cheaper insurance than larger companies for the same exposures
• B)litigation should be reduced as policy meaning becomes understood
• C)consumers are more likely to learn and understand the meaning of standard policies
• D)data collection and rate computation is easier and more accurate

---

Definitions:

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's actual profitability.

Revenues

The total income that a business generates from its normal business activities, usually from the sale of goods and services to customers.

Expenses

Costs incurred in the running of a business operation, such as rent, utilities, and salaries.

Acetylcholinesterase

An enzyme that breaks down the neurotransmitter acetylcholine in the synaptic cleft, thereby terminating the signal between nerve cells.