Which one of the following is an operating cost of insurers?

Insurance

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Which one of the following is an operating cost of insurers?

Options

A.An insured’s funds that could be invested elsewhere if purchasing insurance were not necessary
B. Producers’ commissions
C. Increased property losses because people have insurance
D. Increased liability loss payments because people have insurance

Answer: B. Producers’ commissions are among the operating costs of insurers.

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