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CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
Pretest
Question 9
9
lesson pretest
Multiple Choice
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Question 9 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
How can an insurance company make a profit by taking in premiums and making payouts?
Answer
A
The company only makes payouts from a pool of funds, not from individual premiums.
B
The value of the premiums the company takes in is higher than the value of the payouts it makes.
C
The company issues its policies to individuals who are unlikely to require payouts.
D
The value of the premiums the company takes in is equal to the value of the payouts it makes.
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