How Does Risk Affect Insurance Premiums

question 57

Multiple Choice

How does risk affect insurance premiums?

• A) As risk increases, premiums increase.
• B) As risk increases, premiums decrease.
• C) As risk decreases, premiums increase.
• D) Risk doesn't affect premiums.

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Definitions:

Scientific Management

Approach to work that focuses on the application of scientific methods to increase individual workers’ productivity.

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is known as the father of scientific management.

Worker's Productivity

The efficiency and effectiveness with which an employee performs tasks, contributing to the goals and success of an organization.

Self-evaluation Traps

Psychological patterns where individuals assess themselves in a overly critical or negative way, hampering personal growth and satisfaction.