An Insurance Company Evaluates Many Numerical Variables About a Person

question 47

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance. The number of claims a person has made in the last three years is an example of a ________ numerical variable.

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Definitions:

Fraudulent Representations

False statements knowingly made to deceive others, often to induce them to part with money or property.

Negotiable Note

A written promise to pay a specified sum of money, which can be transferred to others.

Holder in Due Course

A legal term indicating a person who has acquired a negotiable instrument in good faith for value and without notice of any defects.

Negotiation

The process of discussing an issue between two or more parties with competing interests to reach an agreement or compromise.