Which of the Following Refers to a Category Based on Age

question 90

Multiple Choice

Which 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)use of the vehicle

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Definitions:

Present Value Calculation

A financial process that determines the current worth of a future cash flow, stream of cash flows, or an investment, based on a specific discount rate.

Declining-Balance Depreciation

Declining-Balance Depreciation is an accelerated depreciation method that calculates higher depreciation expenses in the earlier years of an asset's life, decreasing over time.

Lease Liability

A financial obligation representing the present value of all future lease payments a lessee is committed to make under lease agreements.

Invests

The act of allocating resources, usually money or capital, in something to earn financial returns or gain profitable outcomes.