Though premiums are an obvious cost of insurance, many insureds believe they are too high because

Though premiums are an obvious cost of insurance, many insureds believe they are too high because




A. Benefits are intangible until a loss occurs.
B. Premiums are not a regular cost of living.
C. Insurers only use eighty cents from every premium dollar to pay losses.
D. Insureds do not deliberately cause losses.



Answer: A. Many insureds believe premiums are too high because benefits are intangible until a loss occurs.

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