The premium that insurance companies charge does not cover the cost of expected losses only. The premium must also cover the cost of compensating agents and other costs of doing business
The amount added to the pure premium to cover these costs is called the
A) expense loading.
B) deductible.
C) dividend.
D) loss reserve.
Answer: A
Business
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In order to estimate respondents' satisfaction with Coke, a researcher asks "In a month, how frequently do you buy Coke?" Another researcher objects to the use of this scale stating that the scale captures purchase frequency and not customer satisfaction. One can say that the scale lacks:
a. reliability. b. face validity c. application comprehension d. application assessment e. application stability
Business
Has the adult film industry become main-stream Hollywood, and what are some concerns unique to this industry?
What will be an ideal response?
Business