Why Is Workers' Compensation Insurance Different Than Other Types of Insurance

question 34

Multiple Choice

Why is workers' compensation insurance different than other types of insurance?

• A)Because workers' compensation insurance does not involve insurance companies.
• B)Because workers' compensation insurance does not collect premiums.
• C)Because workers' compensation insurance is mandated by the state, it has many more restrictions on in than other types of insurance.
• D)Because workers' compensation insurance is illegal.

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Definitions:

Single-Zone Pricing

A pricing strategy where a seller charges the same price for a product or service, regardless of where the buyer is located.

FOB Origin Pricing

A term used in shipping indicating that the buyer takes responsibility for shipping costs and risk of loss from the seller’s location.

Freight-Absorption Pricing

A pricing strategy where the seller absorbs all or part of the freight charges to encourage business in competitive markets or remote locations.

Resale Price Maintenance

An agreement between a supplier and a retailer in which the retailer agrees to sell a product at a specific price or above.