An Insurance Company Evaluates Many Numerical Variables About a Person

question 72

Short Answer

An insurance company evaluates many numerical variables about a person before deciding on an appropriate rate for automobile insurance.The number of claims a person has made in the last 3 years is an example of a ________ variable.

Understand how clarifying and supporting behaviors contribute to effective leadership.

Understand the difference between lifetime annuities and pension plans and the concept of adverse selection.

Recognize consumption smoothing strategies for different stages of life and economic scenarios.

Differentiate between defined benefit and defined contribution pension plans and their associated risks.

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Definitions:

Significantly More Common

An expression used to indicate that an occurrence or characteristic is observed to a much greater extent compared to another.

Catatonic Excitement

A state of extreme motor activity and agitation observed in some psychiatric conditions, part of the broader category of catatonia.

Catatonic Stupor

A severe type of catatonia marked by immobility, mutism, and the inability to respond to external stimuli.

Prodromal Phase

A preliminary stage of a disease, indicating the onset of symptoms but not yet fully developed illness.