One Way of Screening in the Automobile Insurance Market Is

question 78

Multiple Choice

One way of screening in the automobile insurance market is for companies to

• A) offer policies with different deductibles and different premiums.
• B) insure only careful drivers.
• C) insure only risky drivers.
• D) eliminate policies with no-claim bonuses because these policies are usually not profitable.
• E) offer warranties.

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Definitions:

Task Times

The duration required to complete specific jobs or assignments in a production or work process.

Assembly Line

A production process that breaks down the manufacture of a product into steps that are completed in a pre-defined sequence, often on a conveyor belt, to increase efficiency.

Required Times

The specific durations needed to complete tasks or activities within a process, project, or operating schedule.

Cycle Time

The total time from the beginning to the end of a process, indicating the speed at which a complete cycle can be executed.