< Study Room | 03.01.2018

On what basis do insurers set premium rates?

On what basis do insurers set premium rates?

A – For each individual, based on the proportion of the loan amount to the overall cost of the vehicle

B – For groups of customers, regardless of personal details or even dangerous hobbies

C – For individual customers, based on the values of the vehicles being purchased

D – For specific groups of customers, but excluding those with high risk personal details or dangerous hobbies


Answer:

B: Insurers apply premium rates to groups of customers, taking no account of their personal details or generally the extent to which they engage in dangerous activities.

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