Insurance Companies Often Have Different Distribution Systems for Individual and Group

question 5

True/False

Insurance companies often have different distribution systems for individual and group products because individual product distributors deal with individuals and small company owners; and group product distributors deal with human resource departments of corporations and other organizations.

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Definitions:

Selling Price

The amount of money charged to customers for a product or service, potentially including costs, profit margins, and taxes.

Traceable Fixed Expense

Costs that can be directly linked to a specific product, department, or segment and do not change with the level of production.

Net Operating Income

A financial metric that calculates a company's profitability from its core business functions, excluding taxes and interest.

Price Reduction

Price reduction refers to lowering the selling price of goods or services, typically to attract more customers or sell excess inventory.