In practice, the premiums of mutual companies and reciprocals are substantially lower than those of profit-making companies.

Question

Quizplus · Accepted Answer

Mutual companies and reciprocals often offer competitive premiums, but they are not always substantially lower than those of profit-making companies. Premiums depend on various factors including the type of insurance, risk assessment, and market conditions, rather than solely on the profit orientation of the company.

In Practice, the Premiums of Mutual Companies and Reciprocals Are