Sandra Is Contacting Several Insurance Companies to Compare Coverage for Her

question 60

Multiple Choice

Sandra is contacting several insurance companies to compare coverage for her home.Which of the following should NOT affect her premium?

• A) Alarm system
• B) Amount of coverage
• C) Type of structure
• D) Deductible
• E) Proximity to a school

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Definitions:

GIC

A Guaranteed Investment Certificate (GIC) is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, typically issued by banks or trust companies.

Maturity Value

The amount payable to the investor at the end of a security's maturity period; this includes the principal plus interest.

Treasury Bill

Short-term government securities issued at a discount from the face value and mature in a year or less, representing a secure investment.

Simple Interest

Interest calculated only on the principal amount, or the initial sum of money invested or loaned.