Which Statement About a Company's Cost of Risk Is (Are)true

question 14

Multiple Choice

Which statement about a company's cost of risk is (are) true?
I.Cost of risk includes insurance premiums and retained losses.
II.Reducing the cost of risk increases profitability.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Generalization

A concept in psychology and logic referring to the process of extracting common characteristics from specific examples and applying them to broader contexts.

Saliva Drops

Small quantities of saliva, the clear liquid produced by the glands in the mouth, which aid in digestion and keep the mouth moist.

Hertz Tone

A sound frequency measurement, indicating cycles per second.

Contiguity

The concept in psychology that two events happening close together in time or space are perceived to be related.