There have been a series of large judgments in product liability cases against companies producing hair dryers. If this trend continues, insurance companies will respond by ________ the premiums charged for liability insurance for hair dryer manufacturers.
A) lowering
B) canceling
C) increasing
D) underwriting

Question

Quizplus · Accepted Answer

The premium is the fee charged by an insurance company for its coverage. The insurance firm must charge a premium that is adequate to cover its losses and make a profit. As damage awards have increased, so have the premiums charged for the risk protection.

There Have Been a Series of Large Judgments in Product