Question

What is an important consideration in determining the price of insurance?

a.

Profit criteria

b.

Marketing strategies

c.

Investment opportunities

d.

Weather conditions

Answer: (a).Profit criteria Explanation:Profit criteria, such as net present value, internal rate of return, and discounted payback period, are important considerations in determining the price of insurance. These criteria help insurers assess the profitability of insurance contracts and make informed decisions about pricing strategies.

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Q. What is an important consideration in determining the price of insurance?

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