InvestorQ : state the fundamental units? how many types of units?
shaikh afroj made post

state the fundamental units? how many types of units?

Answer
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Mitali Bhutta answered.
1 year ago


A unit in insurance represents a fixed monetary value of insurance coverage for a life insurance policy. It generally equals $1000 worth of coverage, called as an exposure unit. These units help the insurance company to decide premium for your insurance, depending on the type of insurance.

For example- For homeowner’s hazard insurance, one unit might equal $100 or $1000 worth of the value of the vehicle, for auto liability, a unit might be 100 miles driven or one month of use. For worker’s compensation, a unit might be $1000 worth of payroll. Each insurer can define the units in the manner that best suits it. So, there are no types decided in the insurance for units, all are exposure units depending totally on the type of insurance.