Which of the Following Statements Regarding a Good Insurance Agent

question 30

Multiple Choice

Which of the following statements regarding a good insurance agent is true?

• A) The agent is aggressive while pursuing business from the potential insured.
• B) The agent is recommended by professionals like bankers and attorneys.
• C) The agent charges high commissions for providing insurance coverage.
• D) The agent replies with fancy buzzwords and generic answers to questions.
• E) The agent is the first one to solicit the potential insured's patronage.

---

Definitions:

Idle Capacity

The unused portion of the total available capacity within a company, often resulting in inefficiency and increased costs.

Activity-Based Costing

A costing methodology that assigns costs to products or services based on the activities they require, aiming for more accurate product costing.

Resource Consumption

The use of resources (such as raw materials, energy, or labor) in the production of goods or provision of services.

Activity-Based Costing

A costing method that allocates overhead and indirect costs to related products and services based on the activities that drive costs, rather than on traditional volume measures such as machine hours or labor costs.