An Insurance Company Evaluates Many Numerical Variables About a Person

question 40

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. The number of claims a person has made in the last 3 years is an example of a(n)______ numerical variable.

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Definitions:

Wagering Agreements

Contracts or agreements where the parties commit to payments based on the outcome of an uncertain event, often considered void in many legal systems due to lack of insurable interest.

Economic Interest

A financial stake in an enterprise or transaction that influences an individual's or entity's decisions or actions regarding it.

Commission of a Crime

The act of carrying out an action that constitutes an offense punishable by law.

Noncompetition Clause

A contract provision that restricts one party from entering into or starting a similar profession or trade in competition against another party.