One of the Reasons Why There Is Not Sufficient Supply

question 34

Multiple Choice

One of the reasons why there is not sufficient supply for high-risk insurance applicants is:

• A) consumers will not buy insurance if prices are increased
• B) the existence of joint underwriters associations
• C) regulators have limited the premiums that insurers can charge for such customers
• D) the number of insurance contracts written by an insurer is totally regulated

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Definitions:

Financial Data

Financial data consists of records, figures, and quantitative information related to the financial status, operations, and performance of an entity.

Dividends

Payments made by a corporation to its shareholder members; it is the portion of corporate profits paid out to stockholders.

Average Collection Period

The average time it takes for a business to receive payments owed by its customers, indicating the effectiveness of its credit and collection policies.

Balance Sheet

A statement that presents an organization's assets, liabilities, and the equity of its shareholders at a distinct point in time.