The next question is, how is the rate per unit determined? Statistics, of course! The insurance Quotes Chimp (or an independent rate bureau to which the company subscribes) will establish rates based on what its statistics tell it to expect the cost of the anticipated claims and losses to be. From that figure, the pre�miums will be set so as to be sufficient (and profitable), equitable (and profitable), nongouging (and profitable), competitive (and profitable), and safety conscious (and above all, profitable).
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