Which of the Following Statements Regarding Companies That Sell Insurance

question 9

Multiple Choice

Which of the following statements regarding companies that sell insurance directly to consumers is true?

• A)Their insurance agents review the loss claims and file a lawsuit against the negligent party.
• B)They hire only Certified Insurance Counselors as their captive agents.
• C)Their premiums are generally lower than for companies that sell insurance through agents.
• D)They reimburse a higher amount of insurance claims than the companies that sell insurance through agents.
• E)Their deductibles are lower than the companies that sell insurance through agents.

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Definitions:

Need Recognition

The initial step in the consumer decision process that occurs when a consumer identifies a difference between their current state and a desired state.

Visible or Symbolic

Refers to methods of communication or expression where meanings are either directly observable or represented through symbols.

Social Risk

The potential for an individual to experience loss or damage to their social status, relationships, or respect within a community.

Functional Risk

The potential for a product or service to fail to perform its intended purpose, causing inconvenience or loss to the consumer.