Which of the Following Is NOT a Reason Why Group

question 24

Multiple Choice

Which of the following is NOT a reason why group insurance rates are typically lower than individual rates?

• A)Economies of Scale
• B)The ability to pool risks
• C)Disbursement of costs amongst the group
• D)Greater bargaining power of a group

---

Definitions:

Duty of Loyalty

An agent’s obligation to act in the interest of the principal.

Fifth Amendment

An amendment to the US Constitution that provides several rights to individuals, including protection against self-incrimination and double jeopardy.

Defective Corporation

A corporation about which an error or omission was made during its incorporation process.

Incorporator

An individual who applies for incorporation on behalf of a corporation.