Insurance premiums often represent:
A)the expected value of the payout the company will give to individuals who are insured.
B)more than the expected value of the payout the company will give to individuals who are insured.
C)less than the expected value of the payout the company will give to individuals who are insured.
D)peace of mind and are unrelated to the expected value of the payout the company will give to individuals who are insured.

Question

Quizplus · Accepted Answer

Insurance premiums are typically set higher than the expected value of the payout to cover the company's expenses and profit margin. This ensures the company can remain solvent and profitable while providing the insured services.

Insurance Premiums Often Represent