Washington State Insurance Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success!

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Question: 1 / 400

Which components determine insurance rates?

Broker commissions, investment returns, underwriting guidelines

The correct answer is A. Broker commissions, investment returns, and underwriting guidelines are all components that can determine insurance rates.

Option B is incorrect because claim frequency and policyholder credit score can influence insurance rates, but the inclusion of industry standards is not a primary component in determining rates.

Option C is incorrect because while loss reserves, loss adjusting expenses, operating expenses, and profits are important factors for insurance companies, they typically do not directly determine insurance rates for policyholders.

Option D is incorrect because while policy limits, retention rates, and premium growth are factors that can affect insurance rates for policyholders, they are not the primary components that determine rates.

Get further explanation with Examzify DeepDiveBeta

Claim frequency, policyholder credit score, industry standards

Loss reserves, loss adjusting expenses, operating expenses, and profits

Policy limits, retention rates, premium growth

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