Which of the Following Is True About Private Group Insurance

question 7

Multiple Choice

Which of the following is true about private group insurance?

• A)Concern for employee security explains the prevalence of employer-sponsored insurance plans.
• B)Disability insurance programs are mandatory in all high-risk occupations.
• C)Medical insurance programs are mandatory in all organizations.
• D)Individuals have more bargaining power when negotiating prices.
• E)Group insurance rates are typically higher than individual rates because of economies of scale.

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Definitions:

Gross Investment

The total amount spent on new capital assets before accounting for depreciation, reflecting an economy's investment levels.

Plant And Equipment

Physical assets of a business that are permanent structures or fixed machinery used in operations.

Inventory

The total amount of goods and materials held in stock by a business, intended for sale or production.

Partnerships

A business organization in which two or more individuals own and operate the business together, sharing in profits and liabilities.