Insurance Company X is considering issuing a new policy to cover services required by
elderly people who suffer from diseases that afflict the elderly. Premiums for the policy must be
low enough to attract customers. Therefore, Company X is concerned that the income from the
policies would not be sufficient to pay for the claims that would be made.
Which of the following strategies would be most likely to minimize Company X's losses on the
policies?
A. Attracting middle-aged customers unlikely to submit claims for benefits for many years.
B. Insuring only those individuals who did not suffer any serious diseases as children
C. Including a greater number of services in the policy than are included in other policies of
lower cost
D. Insuring only those individuals who were rejected by other companies for similar policies
E. Insuring only those individuals who are wealthy enough to pay for the medical services
OA A
elderly people who suffer from diseases that afflict the elderly. Premiums for the policy must be
low enough to attract customers. Therefore, Company X is concerned that the income from the
policies would not be sufficient to pay for the claims that would be made.
Which of the following strategies would be most likely to minimize Company X's losses on the
policies?
A. Attracting middle-aged customers unlikely to submit claims for benefits for many years.
B. Insuring only those individuals who did not suffer any serious diseases as children
C. Including a greater number of services in the policy than are included in other policies of
lower cost
D. Insuring only those individuals who were rejected by other companies for similar policies
E. Insuring only those individuals who are wealthy enough to pay for the medical services
OA A
The more you suffer before the test, the less you will do so in the test! 
) not to lose money from the claims....gif)
