Generally speaking, the _________ the risk in a job, the _________ workers’ compensation insurance will cost.Select one:a.None of these is correctb.lower; morec.higher; lessd.lower; less

Answered: Generally speaking, the _________ the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Related questions

Question

Generally speaking, the _________ the risk in a job, the _________ workers’ compensation insurance will cost.

Select one:

None of these is correct

lower; more

higher; less

lower; less

Expert Solution

Step 1

Insurance companies provide various premium plan which is sometimes based on

Age factor
Risk Factor/Industry factor
Previous claim factor

As we know that if the person is of high attaining age (Lets say 62 Years) then the cost of premium will little bit high as compared to the premium of the age of 25.

Similarly in case of a person who is having claim history in previous years then the cost of such person for insurance is high as compare to the person having lowest claim history.