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Fractal
- Master | Next Rank: 500 Posts
- Posts: 183
- Joined: Sun Aug 22, 2010 1:02 am
- Location: Switzerland
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Insurance Company X is considering issuing a new policy to cover services required by elderly people who suffer from disease 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?
Correct answer:
Attracting middle-aged customers unlikely to submit claims for benefits for many years.
How can this answer be the correct answer choice? Isn't it totally illogical that middle-aged persons would buy a policy to cover services required by elderly people?
Thx,
fractal
Which of the following strategies would be most likely to minimize Company X's losses on the policies?
Correct answer:
Attracting middle-aged customers unlikely to submit claims for benefits for many years.
How can this answer be the correct answer choice? Isn't it totally illogical that middle-aged persons would buy a policy to cover services required by elderly people?
Thx,
fractal
