1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
The economic cost to society of speeding-related crashes is estimated by the nhtsa to be $__________ billion per year.
Paladinen [302]
<span>The economic cost to society of speeding-related crashes is estimated by the nhtsa to be $40.4 billion per year. Day by day these motor vehicle crashes are increasing. To reduce this care should be taken and everyone should follow the traffic signals properly.</span>
5 0
3 years ago
________ conflict occurs when an individual perceives incompatible demands from others.
Vikentia [17]
External is the conflict
5 0
3 years ago
December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun u
allochka39001 [22]

Answer:

A. NA = NA + NA NA -NA = NA NA NA

Explanation:

As Year 2 the customer paid Loudoun the $1,050,which was written off On April 4, Year 1.

Therefore, the following journal entries to record the transaction.

Accounts receivable                     debit $1,050

Allowance for doubtful accounts credit $1,050

To record reinstatement of accounts receivable.

Cash                           debit $1,050

Accounts receivable credit $1,050

As one asset account is increase and another asset account is decreased.

7 0
3 years ago
What is plan procurements?
il63 [147K]
The process of documenting project procurement decisions specifying the approach and identifying potential sellers   

3 0
3 years ago
Cullen Company has $235,000 in credit sales, and $164,200 in its Accounts Receivable at the end of the year. The company uses th
S_A_V [24]

Answer:

Net Realizablel Value of Account receivable = $142,850

Explanation:

Particulars                                                             Amount

Total Accounts Receivable                                  $164,200

- Pre-adjusted Uncollectable Account balance  $7,250

- Current Year Uncollectable Amount                 <u>$14,100   </u> ($235000*6%)

Net Realizable Value                                            <u>$142,850</u>

4 0
3 years ago
Other questions:
  • Kindzi Co. has preferred stock outstanding that is expected to pay an annual dividend of $4.74 every year in perpetuity. If the
    9·1 answer
  • Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producin
    15·1 answer
  • What did economic liberalism stand for​
    7·1 answer
  • Under the fair labor standards act, eligible employees may take up to twelve weeks of leave within a twelve-month period to care
    14·1 answer
  • Product extension and refinement:a. shorten the product life cycle. b. extend the product life cycle. c. are too costly for most
    11·1 answer
  • Which of the following is needed to prepare the production budget? a.Expected unit sales b.Cost of direct materials needed for p
    12·2 answers
  • Which of the following groups does not sponsor apprenticeship programs?
    10·1 answer
  • A city assesses property owners $50 million to extend sewer lines to their neighborhood. By year-end, however, it has not begun
    12·1 answer
  • Superior has provided the following information for its recent year of operation: The common stock account balance at the beginn
    11·1 answer
  • Which is the most effective way to discover customers' needs? multiple choice question. regulatory oversight marketing research
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!