8
QuizMultiple Choice

Insurance

Question 8 of 10 • General Financial Literacy - Brinkerhoff - 2000 - 2026/27

How can an insurance company make a profit by taking in premiums and making payouts?

Answer
A
The value of the premiums the company takes in is higher than the value of the payouts it makes.
B
The value of the premiums the company takes in is equal to the value of the payouts it makes.
C
The company only makes payouts from a pool of funds, not from individual premiums.
D
The company issues its policies to individuals who are unlikely to require payouts.
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