The insurance premium is ____ related to the uncertainty about the size of the payments; the premium is also ____ for group plans.

Question

Quizplus · Accepted Answer

The insurance premium is higher when there is greater uncertainty about the size of the payments because the insurance company needs to compensate for this risk. Group plans, on the other hand, typically have lower premiums due to the larger pool of members, which helps to spread the risk.

The Insurance Premium Is ____ Related to the Uncertainty About