Quick Answer: What affects the amount of an insurance premium quizlet?

-The greater the risk, the higher the premium. -Actuaries base life insurance premiums on three factors: mortality, interest, and expenses.

What affects the amount of an insurance premium?

Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.

What factor affects insurance premiums the most quizlet?

Age of home affects insurance premiums the most.

What factors affect the cost of insurance quizlet?

Factors that can affect an auto insurance premium​ are: -Value of the insured​ vehicle: the higher the value of the​ car, the higher the premium. -Repair record of the​ car: the more easily car damage can be​ repaired, the lower the premium. -Your​ age: younger drivers have less experience and pay higher premiums.

What are some factors that affect term life insurance premiums quizlet?

Some criteria which help to determine premiums:

  • Age of proposed insured.
  • Sex (females pay lower rates since they live longer)
  • HEATH HISTORY of proposed insured.
  • FAMILY HEALTH HISTORY.
  • PERSONAL ACTIVITIES OR HOBBIES (ex. dangerous activities like skydiving)
  • PERSONAL HABITS (ex. smoking)
  • Occupation.
  • Salary, earnings, wages.
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How do you calculate insurance premiums?

Insurance Premium Calculation Method

  1. Calculating Formula. Insurance premium per month = Monthly insured amount x Insurance Premium Rate. …
  2. During the period of October, 2008 to December, 2011, the premium for the National. …
  3. With effect from January 2012, the premium calculation basis has been changed to a daily basis.

What makes insurance increase?

The main rating factors for auto insurance are: Geographical location, age, gender, years of driving experience, credit history, vehicle type and miles driven annually. Young adults and elderly drivers are more likely to cause an accident and end up paying higher premiums because of their inexperience.

What is the purpose of insurance quizlet?

The purpose of insurance is to protect against losses caused by pure risk. This is accomplished through the insurance contract, which requires one party to pay a specified sum to another if a previously identified event occurs.

What is the best way to buy a car quizlet?

The best way to buy a car is with cash.

What does it mean if a loan is amortized What do the loan payments represent quizlet?

When a loan is amortized it means that the principal is: repaid through a series of equal loan payments. As more principal is repaid, the amount of interest is: reduced, and a larger portion of the payment is used to repay the principal.

How do individuals benefit from having health insurance quizlet?

Individuals financially benefit from having health insurance because​ it: –provides protection against the high expenses of health care that could eliminate wealth. … -Hospital insurance provides coverage for individuals who require care from a hospital, up to a specified limit.

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What is the best method for overcoming the effects of drowsiness?

If you notice any sign of fatigue, the safest course of action is to stop and sleep. If no motels, rest areas or truck stops are nearby, pull off the road in a safe, well-lit area, lock your doors and take a nap. Even 30 minutes of sleep can refresh you enough to keep going until you reach a safe rest area.

With confidence in life