Multiple Choice
Which of the following statements is correct about the fair rate of return for insurance companies?
A) The fair rate of return is measured using the expense ratio.
B) The fair rate of return is governed by law.
C) The fair rate of return reduces the insurance premiums charged by insurance companies.
D) The fair rate of return compensates the insurance companies for the risk that they take.
Correct Answer:
Verified
Correct Answer:
Verified
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