Which of the Following Is NOT a Classic Principle of Insurance

question 40

Multiple Choice

Which of the following is NOT a classic principle of insurance?

• A) The definition of an insurable event is one where the financial risk is significant.
• B) The risk or the probability of occurrence is measurable for a group.
• C) The occurrence of the event is infrequent.
• D) Service is desirable by the patient.

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Definitions:

Development Costs

Development costs are the expenses associated with the research and development of new products or services, aiming to improve or create new offerings.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate sales, calculated by dividing sales by total assets.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales with total assets.

Net Sales

The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and discounts.