Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it

Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it



A. Increases competition in the industry.
B. Reduces agents' commissions.
C. Increases the total cost of insurance.
D. Reduces the term of many policies.



Answer: C. Sometimes the existence of insurance encourages losses.The result of this phenomenon is that it increases the total cost of insurance.

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