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Travka [436]
2 years ago
5

The number one reason risk pooling is valuable to the insurance industry is... A. It allows companies to charge the same premium

to all members of the pool. B. It brings together many individuals' premiums so that there is money to cover the select few with losses. C. It makes insurance coverage available to everyone, even those who are unable to make their payments. D. It is subsidized by the federal government.
Business
1 answer:
kolbaska11 [484]2 years ago
7 0

The reason for risk pooling which is beneficial for the insurance industry is best described as it brings together many individuals' premiums so that there is money to cover a selected few losses.

Option B is the correct answer.

<h3>Who is a policyholder?</h3>

The policyholder is an individual who takes an insurance policy from an insurance company. He pays insurance premiums against their respective policies.

The insurance contract is an agreement between the individuals and insurance company to indemnify them at the happening of the specified event and individuals also agreed to pay the insurance premiums on time. The risk pooling allows the insurance company to get insured many people against a small amount of money called an insurance premium.

Therefore, risk pooling is valuable for the insurance company in respect of the insurance policies.

Learn more about the insurance in the related link;

brainly.com/question/14969988

#SPJ1

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Question 5 of 10
Lisa [10]
Annual percentage rate !
6 0
2 years ago
Investor perception on the risk of bonds will raise their desired return.
faust18 [17]

The statement, investor perception on the risk of bonds will raise their desired return is true.

The higher an investment's risk, the greater its potential returns should be. By contrast, a very safe and low-risk investment should generally offer low returns. So, this investor perception will raise the desired return of the risk of bonds.

Generally, the higher the potential return of an investment, the higher the risk. Thus, there is no guarantee that you will actually get a higher return by accepting more risk. In this matter diversification is useful.

Hence, you can minimize the risk by making sure the company's bond you own is not a high risk company with a high probability of paying back.

To learn more about risk of bonds here:

brainly.com/question/14850768

#SPJ4

3 0
2 years ago
Suppose that you won a lawsuit and were awarded a series of payments of $10,000 a year for 10 years. Assuming an interest rate o
DochEvi [55]
Okay. So it's $10,000 per year, which is $100,000 in 10 years. I'm not so sure how to solve it exactly, but I found a lump sum calculator online. I put the information on that and according to the calculator, today's payment in a lump sum would be $50,894.93. The future value is $100,000 with 10 periods (in this case, years) of the interest rate of 7% once per year. I think that the answer is $50,894.93.
4 0
3 years ago
Will make you BRAINLIEST!
finlep [7]

Answer:

The recent loss of 440 manufacturing jobs at Ford Australia has generated a lot of debate about the long-term viability of the Australian car industry, and manufacturing in general. This debate has included arguments that manufacturing is important and needs more government support. It has also seen some commentators argue that Australian’s have no right to expect jobs in manufacturing.

While most of this debate has focused on the automotive manufacturing sector, there is a wider question that needs to be answered. This relates to the issue of whether it is feasible for an advanced economy to grow and prosper without a manufacturing sector?

Explanation:

3 0
3 years ago
Neptune Inc. uses a standard cost system and has the following information for the most recent month, April: Actual direct labor
Naddik [55]

Answer:

$3,200 overapplied

Explanation:

The computation of the total underapplied or overapplied factory overhead is shown below:

Given that

Actual total factory overhead costs incurred is $45,400

Now Overhead applied to production

= (Total factory overhead application rate per standard DLH × Standard direct labor hours allowed)

= $2.70 × 18,000

= $48,600

As we can see that the overhead applied amount is more than the actual amount so the overhead cost would be overapplied i.e.  

 = $48,600 - $45,400

= $3,200 overapplied

8 0
3 years ago
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