Factors That Affect the Price a Company Charges for a Life

question 115

Multiple Choice

Factors that affect the price a company charges for a life insurance policy include

• A)the returns on its investments
• B)the mortality rate it expects among its policyholders
• C)the features the policy contains
• D)competition among companies with comparable policies
• E)all these factors affect the price a company charges for a life insurance policy

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Definitions:

Highly Formalized

A description of organizations or systems where procedures and rules are strictly followed, often with detailed documentation and protocols.

Separate Product

A distinct item or entity that is produced individually or can be easily distinguished from other products in a line or category.

Geographic Divisions

The segmentation of areas or regions on Earth's surface for the purposes of analysis, management, and categorization, often used in geography and related disciplines.

Tall Organization

An organization with relatively many levels in its hierarchy of authority.