Question

question 2 (1 point)
which of these factors will have an impact on how much you pay for auto insurance? (check all that apply)

a whether you were born in the us
b your driving record
c your age
d how many miles you drive per year

question 3 (1 point)
insurance companies make money by...

a refusing to pay out claims to policyholders
b keeping costs low with minimal advertising
c collecting more in premiums than they need to pay out each year and reinvesting that money so that it grows exponentially
d collecting money from the government

Explanation:

Question 2

• Option a: Place of birth (US or not) is not a factor for auto insurance premiums.
• Option b: A good driving record (fewer accidents/violations) reduces risk, so insurers charge less.
• Option c: Age affects risk (e.g., young drivers are riskier), so it impacts premiums.
• Option d: More miles driven means higher accident risk, so it impacts insurance cost.

• Option a: Insurance companies pay valid claims; refusing is unethical/illegal.
• Option b: Advertising is part of business, but not the main profit method.
• Option c: Insurers collect premiums, invest the surplus (after paying claims), and profit from investment returns.
• Option d: Collecting "viewer fees" is not how insurance works.

Answer:

b. Your driving record, c. Your age, d. How many miles you drive per year

Question 3