Which of the following factors would cause your premium to be higher?

What are the factors of premium?

How insurance companies set health premiums. Five factors can affect a plan's monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents. Notice: FYI Your health, medical history, or gender can't affect your premium.

Which of the following types of risk will result in a higher premium?

Substandard risk will result in the highest premium as these individuals have a higher likelihood of experiencing a loss or making a claim. Explanation: The highest premium will be charged for substandard risk.

What makes insurance higher?

Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.

Which 5 factors determine the premium amount?

Which of the following affects your insurance rates?

Common rating factors include age, location, driving history, credit score, and more. Put simply, the less risky your rating factors are, the cheaper your car insurance policy will be. Some auto insurance rating factors — such as driving record or vehicle type — have relatively sizeable impacts on car insurance costs.

Why is my health insurance premium increasing?

This is due partly to inflation - how much more services cost one year versus the next. Costs also go up when individuals use more health care services than expected or when they require expensive care.

What drivers generally pay more?

Your age – In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. Insurers generally charge more if teenagers or young people below age 25 drive your car.

What are the factors affecting premium calculation?

Your insurance premiums are primarily based on the specific risks you face and your individual claims experience, however factors such as claims inflation, investment returns and the expenses in providing the insurance service itself will have an impact.

What makes up a premium?

The cost of your insurance policy depends on your risk, which in turn reflects how likely you are to make a claim. The lower your risk, the lower your premium will generally be. It also depends on the value of what you are insuring, because things with a higher value will generally cost more to repair or replace.

What do higher premiums mean?

Policies with lower deductibles typically have higher premiums, meaning you'll pay more each month for your insurance coverage. However, if you have a higher deductible, you may be able to save money on your premiums but may be responsible for paying more out of pocket if you need to file a claim.

What factors determine premium Quizlet?

Some factors that affect your insurance include age, gender, miles are driven, and marital status.

What is a premium factor?

The basic premium factor is the acquisition expenses, underwriting expenses, profit, and loss conversion factor adjusted for the insurance charge for a policy. The basic premium factor is used in the calculation of retrospective premiums.

Which of the following premium payment modes would result in the highest overall?

Final answer: Monthly payments for insurance premiums typically incur the highest annual cost due to additional fees. In contrast, annual payments generally represent the lowest total costs. Therefore, the correct answer is that monthly payments result in the highest annual cost.

What is the formula for premium?

Premium = (Risk Factor * Sum Insured) / Coverage Period

In this formula: Risk Factor: Risk associated with the insured item or individual is usually expressed as a percentage. Sum Insured: the total amount of coverage required. Coverage Period: the duration for which the insurance coverage is valid.

What causes high health insurance premiums?

The rate companies pay for insurance is based on an employee's medical spending on hospital costs, doctors, prescription drugs and other medical services. Some employers seek to rein in those costs by excluding pricier hospitals or other medical providers from their insurance plans' networks.

How does your insurance increase?

Factors that determine your rate

Vehicle make, model, year and safety features. Your age and gender and marital status. Your driving and insurance history, which includes claims and convictions, and may include other factors such as whether or not you have taken driving training. How long you have had your licence.

Why is my insurance so high at 18?

According to data from the Centers for Disease Control and Prevention (CDC), teen drivers between the ages of 16-19 are three times more likely to cause a fatal car crash than drivers aged 20 and older. Because young drivers are risky to insure, insurance companies often charge the highest rates for teen drivers.

What causes risk premium to increase?

It is the variation in cash flow from one period to another that causes greater uncertainty and leads to the need for a greater risk premium for investors.

Which risk would charge the highest premium payment?

"Substandard". A substandard classification charges the highest premium.

What are the different types of high risks?

High-risk behaviors are defined as acts that increase the risk of disease or injury, which can subsequently lead to disability, death, or social problems. The most common high-risk behaviors include violence, alcoholism, tobacco use disorder, risky sexual behaviors, and eating disorders.