Which of the Following Statements About Group Insurance Is True

question 7

Multiple Choice

Which of the following statements about group insurance is true?

• A)Individual contracts are issued to each person covered under a group insurance plan.
• B)The cost of group insurance is usually higher on a per-person basis than the cost of individual insurance.
• C)The actual experience of a large group is a factor in determining the premium that is charged.
• D)Individual evidence of insurability is usually required.

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Definitions:

Retained Earnings

The portion of net income that is kept within the company rather than distributed to its shareholders as dividends.

Prepaid Rent

Payments made in advance for rent on a property or space that is to be used in the future, recorded as an asset on the balance sheet until the period to which the payment applies passes.

Sales Revenue

The total income a company generates from selling its goods or services before any costs or expenses are subtracted.

Wage Expense

The total amount spent by a business on salaries and wages for its employees.