Insurance Companies Can Usually Cover the Claims of Policyholders Because

question 15

Multiple Choice

Insurance companies can usually cover the claims of policyholders because:

• A) the incidence of claims normally averages out across all policyholders.
• B) they issue a very limited number of policies.
• C) they are fully insured by the U.S. government.
• D) their stockholders will cover any cash shortfalls encountered by the company.

Comprehend the differences in reading speeds between online and print reading materials.

Learn about instructor policies on assignment deadlines and the importance of communicating with instructors.

Understand how to approach difficult sections in textbooks, especially in technical subjects like mathematics.

Grasp the effective use of highlighters and annotations in scientific textbooks for studying.

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Definitions:

Line of Credit

A flexible loan arrangement with a financial institution that allows a borrower to draw funds up to a specified limit at any time.

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for some types of loans and lines of credit.

Effective Annual Interest Rate

The interest rate that is adjusted for compounding over a given period. Essentially, it reflects the total interest that will be paid or earned over a year, taking into account the effect of compounding.

Inventory Turnover Rate

A financial metric measuring how often a company's inventory is sold and replaced over a period.