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

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs used in production and the output produced from those inputs.

Labor Hired

The quantity of work force employed by businesses to perform various tasks, measured in worker units or hours.

Minimize Costs

The process of finding strategies and methods to reduce expenses and operational costs to the lowest possible level without sacrificing quality or performance.

Production Function

An equation that describes the relationship between inputs (like labor, capital) and the maximum output that can be produced with those inputs.