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This question was created from Dated 1-22-19 Thought Questions Assignment 1 from Chapter 1, Appendix A and Chapter 2 _3_ (2).docx https://www.coursehero.com/file/37624254/Dated-1-22-19-Thought-Questions-Assignment-1-from-Chapter-1-Appendix-A-and-Chapter-2-3-2docx/

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3a. Many car insurance companies offer discounts for safe drivers. The promise is lower
premiums or a reduction in deductibles for customers that remain accident-free for
a specified period of time. The discounts are not without a cost, however.
Policyholders must pay an additional premium (periodic fee paid for insurance
coverage) in order to participate in the program. Understanding opportunity cost,
explain how safe-driver programs might be beneficial for some customers but not
others.

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It would be beneficial for drivers who make claims. If a client never makes a claim or if the probability of making the claim... View the full answer

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