Which of the following statements is true about an individual insurance contract?
A)The pricing of the contract is based on the experience of the insurance company.
B)A master contract is provided to the employer or a trust.
C)The employee is issued a certificate of insurance.
D)The eligibility of the contract is related to the employment period.
E)The pricing of the contract is based on the experience of the employee group.

Question

Quizplus · Accepted Answer

The pricing of an individual insurance contract is typically based on the experience of the insurance company, which includes their historical claims data, administrative costs, and profit margins. This allows the insurer to set premiums that are reflective of the perceived risk of insuring an individual, as opposed to group insurance contracts where pricing might be influenced by the collective experience of an employee group.

Which of the Following Statements Is True About an Individual