Which of the following statements regarding companies that sell insurance directly to consumers is true?
A)Their insurance agents review the loss claims and file a lawsuit against the negligent party.
B)They hire only Certified Insurance Counselors as their captive agents.
C)Their premiums are generally lower than for companies that sell insurance through agents.
D)They reimburse a higher amount of insurance claims than the companies that sell insurance through agents.
E)Their deductibles are lower than the companies that sell insurance through agents.

Question

Quizplus · Accepted Answer

Companies that sell insurance directly to consumers typically have lower operational costs because they do not have to pay commissions to agents. This cost-saving can be passed on to consumers in the form of lower premiums.

Which of the Following Statements Regarding Companies That Sell Insurance