Why are group policies often offered at reduced premiums?
A)Low marketing costs
B)Mass volume efficiency
C)Lower probability of payout by the insurance company.
D)All of the above
E)Both a and b

Question

Quizplus · Accepted Answer

Group policies are often offered at reduced premiums because of the low marketing costs and mass volume efficiency of selling to a large group of individuals. Additionally, the lower probability of payout by the insurance company is also a factor that contributes to reduced premiums. Therefore, both options A and B are correct.

Why Are Group Policies Often Offered at Reduced Premiums