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All About Insurance Premiums

Almost everyone has heard the term "insurance premium" and the vast majority of Americans make regular premium payments to one insurance company or another. But many people have no real understanding of what exactly a premium entails. Here is a brief explanation of the process. An insurance premium is basically the amount a person pays for a certain level of insurance coverage. Insurance companies base their premium calculations on several factors that make up a business model. This model takes into consideration all of the factors that affect the likelihood of a claim being filed on a specific type of insurance. The end goal is a determination that protects the company while providing the lowest rates possible in order to attract clients. Underwriting Process The underwriting ... Read more

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