Quarterly Payments: The Insured Party's Biggest Risk
Quarterly premium payments increase the annual cost of insurance because: A) insurer risk exposure is greater. B) interest to the insurer is increased while administrative costs are. Jun 11, 2018 · quarterly premium payments increase the annual cost of insurance due to the financial risk and administrative costs companies bear. When customers delay their payments.
Insurance companies invest premiums to earn interest, and when. Sep 13, 2023 · quarterly premium payments can lead to a higher annual cost of insurance for policyholders due to several financial factors. When insurance premiums are paid quarterly. While high premiums have made most purchasers of insurance cost conscious, little attention has been paid to the real cost of protection and the advisability of remitting the premium in multiple. Study with quizlet and memorize flashcards containing terms like quarterly premium payments increase the annual cost of insurance because a. Insurer risk exposure is greater b. When premiums are paid quarterly, the insurance company receives less money upfront, which means they have less capital to invest and earn interest on. Quarterly premium payments increase the annual cost of insurance because: Sep 9, 2023 · quarterly premium payments can increase the annual cost of insurance because the interest to the insurer is decreased while administrative costs are increased (option c). The risk associated with fatality rises, which diminishes the financial gain of such an organization, simultaneously increasing the managerial cost.
