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:

Financial Structure

Refers to the mix of debt and equity finance used by a company to finance its operations and grow.

Machinery

Equipment or devices designed for a specific purpose, often used in manufacturing or industrial processes.

Investing Activities

Transactions and events that relate to the investment of the company’s cash, including acquisitions and disposals of long-term assets and other investments not included in cash equivalents.

Cash Flows

The net amount of cash being transferred into and out of a business.