Final answer:
Insurance companies generate their revenues from receiving payments for policies and investing the proceeds of premiums. The correct option is c.
Step-by-step explanation:
Insurance companies generate their revenues from two main sources: receiving payments for policies, and investing the proceeds of premiums until the funds are needed to cover losses.
Firstly, insurance companies receive payments, also known as premiums, from individuals or businesses who purchase insurance policies. These premiums vary depending on factors such as the type and amount of coverage being provided, the level of risk associated with the insured party, and the company's pricing strategy.
Secondly, insurance companies invest the funds they receive from premiums in order to generate additional income. They do this by investing in safe and liquid investments, such as government bonds or low-risk stocks.
The income generated from these investments provides an additional source of revenue for the insurance company. The correct option is c.