The reason we chose A is :
If Company X attracts middle aged people who will not be claiming any amount in the near future,X could use the premiums that these Middle aged people had paid. In this way this excess amount can be used to settle claims made by the elderly people covered in X's new policy.
Is my understanding right?
If Company X attracts middle aged people who will not be claiming any amount in the near future,X could use the premiums that these Middle aged people had paid. In this way this excess amount can be used to settle claims made by the elderly people covered in X's new policy.
Is my understanding right?
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