Insurance Companies Use _____ to Determine Whom They Will Insure

question 10

Multiple Choice

Insurance companies use _____ to determine whom they will insure and what they will charge for insurance coverage.

• A) Social Security survivor's benefits
• B) the needs analysis method
• C) underwriting
• D) risk assumption
• E) loss control

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Definitions:

Statement of Net Position

A financial statement detailing an entity's assets, liabilities, and net position at a particular point in time, providing a snapshot of financial health.

Tax Abatement

A reduction or elimination of taxes granted by governments to encourage certain activities, such as investments in property development.

Disclosed

Information that has been revealed or made available publicly, often related to financial or operational details.

Commitments

Commitments are potential liabilities or obligations that a company has legally agreed to fulfill in the future, such as contracts for goods or services that have not yet been delivered or paid for.