Insurance companies can usually cover the claims of policyholders because:

Question

Quizplus · Accepted Answer

Insurance companies are able to cover the claims of policyholders because the incidence of claims normally averages out, they issue thousands of insurance policies, and the cost of paying for claims has already been factored into the price of the policies. Therefore, all of these choices contribute to the ability of insurance companies to cover policyholder claims.

Insurance Companies Can Usually Cover the Claims of Policyholders Because