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An insurance company pays 20% on the first year premium amount. The rate of commission reduces to 6% for the subsequent years. A customer purchased a policy premium at 5% of the policy amount. Find the agents total earning for the premium for the period of seven years. |
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Answer» Hi,Explanation:By the END of this section, you will be able to:Explain how insurance worksIdentify and EVALUATE various forms of GOVERNMENT and social insuranceDiscuss the problems caused by moral hazard and adverse selectionAnalyze the impact of government regulation of insurance |
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