When the Level of Insurance Premiums That Someone Pays Is

question 56

Multiple Choice

When the level of insurance premiums that someone pays is equal to the amount that an average person in that risk group would collect in insurance payments, the level of insurance

• A) will be adverse to profits.
• B) will be actuarially sound.
• C) complies with fundamental law.
• D) reaches actuarial fairness.

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Definitions:

Inclusive Unions

Labor unions that aim to represent and protect the interests of all workers, regardless of race, gender, or industry, promoting equal rights and opportunities.

Exclusive Unions

Exclusive unions refer to labor unions that represent a specific set of workers, often requiring membership as a condition for employment within certain industries.

Above-equilibrium Wage

A wage rate set higher than the market equilibrium, often leading to decreased unemployment and potentially excess supply of labor.

Human Capital Investment

The expenditure of resources on education, training, and health, aiming to increase the productivity and earnings potential of individuals.