Question

Why is group insurance generally less expensive than policies sold by insurance agents?

A. It is required by law.

B. Groups make higher profits.

C. It is worse insurance.

D. Selling costs are lower.

Answer 1

D. Selling Costs are Lower

Step-by-step explanation:

Group insurance is provided at lower rates than individual insurance, primarily because of the lower administrative, operational, and selling expenses associated with group contracts.