What Would Cause a Decrease in the Premium Paid for a Fixed-Fee

question 27

Multiple Choice

What would cause a decrease in the premium paid for a fixed-fee service contract?

• A) Decrease in the number of insurance contracts
• B) Prompt settlement of claims
• C) Increase in the frequency of claim disputes
• D) Increase in the number of insurance contracts

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Definitions:

Consumer Goods

Products and commodities that are bought and used by individuals and households for personal or household consumption.

Personal Purposes

Activities or objectives pursued for an individual’s own private, personal, or household reasons, as opposed to professional or business reasons.

Perfected Security Interest

A perfected security interest is a legal state where a creditor has completed all necessary steps to establish and maintain priority over other creditors concerning a debtor's asset.

Financing Statement

A document filed to give public notice of a security interest in property, used to perfect a secured creditor's interest in the collateral.