comprehension and vocabulary

[jiang]

:?
I got somewhat confused. 'rate relief' means to reduce rate. Now as I understand it it means 'to raise rate'. Is that right?

I am looking forward to hearing from you.

Thank you in advance.

Have a nice weekend.

Jiang

Originally Posted by Casiopea

Afer a catastrophe (i.e. disaster), the insurance companies pay out money to insurance holders. If the catastrophe is great, then the greater the amount of money the insurance company pays out. The insurance company (i.e. 'insurer') loses a great deal of money. So in order to compensate for their monetary losses, they increase the insurance rates/premiums.

For example, if a typhoon destroys your house, your insurance company gives you a set amount of money to rebuild your house, and your insurance rates will probably increase.

The insurance company, which is in the business of making money, loses money when there is a disaster. In order to make up their losses, they increase their premiums/rate/fee.

[Tdol]

Raising rates is a relief to the insurance companies.

[jiang]

:D
Thank you very much for your explanation.

The end of the passage implies that, to compensate for their huge loss, the insurers will__________.
a. resort to a very big increase in insurance premiums
b. ask for subsidies from the government
c.reduce their insurance coverage thereafter
d.require a higher interest rate from the bank.
The key is 'a' .

Now I see 'insurance premiums' refers to 'rate set by insurance companies'. When the rate is increased the companies are relieved. Is that right?

I am looking forward to hearing from you.

Thank you in advance.

Have a nice weekend.

Jiang

Originally Posted by tdol

Raising rates is a relief to the insurance companies.

[Casiopea]

Originally Posted by jiang

:D
Thank you very much for your explanation.

The end of the passage implies that, to compensate for their huge loss, the insurers will__________.
a. resort to a very big increase in insurance premiums
b. ask for subsidies from the government
c.reduce their insurance coverage thereafter
d.require a higher interest rate from the bank.
The key is 'a' .

Now I see 'insurance premiums' refers to 'rate set by insurance companies'. When the rate is increased the companies are relieved. Is that right?

I am looking forward to hearing from you.

Thank you in advance.

Have a nice weekend.

Jiang

That's correct. :D Insurance companies increase their insurance rate in order to alleviate their monetary or financial problems. :D

All the best,

[jiang]

:D
Thank you very much for your further explanation. Now I understand it perfectly.

Jiang

Originally Posted by Casiopea

That's correct. :D Insurance companies increase their insurance rate in order to alleviate their monetary or financial problems. :D

All the best,