Explain how insurance rates are set.

What will be an ideal response?


Insurance rates are the fee structures that are assigned to a particular company. These fee structures are based on several different criteria, including:
• Potential claims by employees.
• Expenses/losses of the insurer.
• Profits to be made from premiums.
The criteria are then evaluated and used to calculate potential profits for the insurance company.

Legal Studies & Paralegal

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