A construction pays less than its competitors for workers' compensation insurance because the company has had substantially fewer employee injuries than other firms in its class. This illustrates which one of the following benefits of insurance?

A construction pays less than its competitors for workers' compensation insurance because the company has had substantially fewer employee injuries than other firms in its class. This illustrates which one of the following benefits of insurance?




A. Comply with legal requirements
B. Efficient use of insured's resources
C. Promote loss control activity
D. Reduce social burden


Answer: C. Premium savings provide an incentive for an insured to control losses.

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