Which One of the Following Refers to a Category Based

question 107

Multiple Choice

Which one of the following refers to a category based on age, sex, marital status, and driving habits that is used to set automobile insurance premiums?

• A) Rating territory
• B) Assigned risk pool
• C) No-fault system
• D) Driver classification
• E) Rating tiers

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Definitions:

Ending Cash Balance

The amount of cash a company has at the end of a given financial period, reflecting all cash inflows and outflows.

Budgeted Cash Receipts

Projected cash inflows for a future period, based on sales forecasts and other receipts.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including operating expenses, purchase of assets, and other payouts.

Variable Selling Expense

includes costs that vary directly with sales volume, such as commissions, shipping charges, and promotional expenses.