Which of the Following Explains the Movement of Insurance Prices

question 59

Multiple Choice

Which of the following explains the movement of insurance prices through time?

• A)Redlining cycle
• B)Demutualization
• C)Actuarial cycle
• D)Amortization cycle
• E)Underwriting cycle

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Definitions:

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no net profit or loss.

Sales Mix

Sales mix refers to the combination of different products or services that a company sells, impacting the overall profitability depending on the profit margin of each product or service.

Variable Expenses

Expenses that fluctuate with the level of output or activity, in contrast to fixed expenses that remain constant regardless of activity level.

Net Operating Income

The earnings a business retains after subtracting operational costs, prior to the deduction of interest and taxes.