Which of the Following Practices Allows Insurance Firms to Reduce

question 68

Multiple Choice

Which of the following practices allows insurance firms to reduce the costs imposed by the high-risk customers?

• A)A homeowners' insurance covers only the market value of structures and contents
• B)A higher premium is charged under a group insurance than a single party insurance
• C)A vehicle insurance charges different rates of premium each year
• D)A fixed claim is honored by a fire insurance contract for all the houses in an apartment

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Definitions:

Treating Physician

A healthcare professional responsible for diagnosing and managing the care of a patient's health condition.

Consultation

The act of seeking expertise or advice from a professional or expert in a specific field to inform decisions or enhance outcomes.

Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction, marked by physical changes including growth spurts and hormonal changes.

Environmental

Relating to the natural world and the impact of human activity on its condition.