An Insurance Company Evaluates Many Numerical Variables About a Person

question 70

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.The distance a person drives in a year is an example of a variable.

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Definitions:

Effective Practice

Approaches or methodologies that have consistently shown results superior to those achieved with other means, and are based on evidence.

Policy

A course or principle of action adopted or proposed by an organization or individual.

Rules

Explicit or understood regulations or principles governing conduct within a specific activity or sphere.

Critical Thinking

Critical thinking is the process of actively analyzing, interpreting, evaluating, and synthesizing information in order to form a judgment or conclusion.