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Question

a. What enables insurance companies to stay in business while still charging the premiums that they do? b. What are the similarities and differences between private insurance and social insurance? c. In your opinion, should the federal government continue the Social Security system? Why or why not?

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Answered 2 years ago
Answered 2 years ago
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(a)

How insurance companies can remain in that business and generate profits is that they handle a large number of clients and insurance policies where only a smaller percentage will suffer a loss or accident, which allows to cover it with the payment of the largest percentage of clients who did not use their insurance.

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