They want to know how risky you are to insure — how likely you are to die while you're covered — so they can
price your premiums accordingly.
That means that, before a company sells a life insurance policy, they need to know the likelihood of an applicant dying over the life of the policy so they can
price the premiums accordingly.
Husband and wife are more than likely to drive each other's cars from time to time, so insurance companies need to accurately asses the risk each person poses in order to
price the premiums accordingly.
Not exact matches
That is unknown, as is how the market will go for a
premium - content technological winner — that knows it, and is
priced accordingly.
The 128 GB iPad will of course be a
premium model and is
priced accordingly, reportedly this will mean $ 799 (# 508) for the Wi - Fi only version and $ 929 (# 591) for 3G / 4G models.
And again, always keep in mind that option writers are not dummies; they're like insurance underwriters... they've done their homework, they know the percentages and probabilities of profits or losses for each strike
price, and for the most part, they adjust their
premium prices accordingly.
Obviously, most tenders are
priced at a significant
premium to current share
prices — but management clearly viewed this as an opportunity to exit part of their holdings, and quite impressively, decided
accordingly to peg the tender offer to the current share
price.
The obvious problem is they're generally
priced accordingly — their additional valuation
premium reflecting the (perceived) consistency & sustainability of future excess profits.
And with CWI's share
price now climbing slowly but surely, and nearing a
premium to book value, its interest in potentially obtaining a higher valuation for its German property portfolio via KWG diminishes
accordingly.
Of course, airlines know that people are willing to pay more to avoid being miserable on such a long flight and
price their
premium class flights
accordingly.
To get a good hotel without hustling (and probably paying for a
premium price — demand affects
price), understand the peak and off - peak seasons and plan
accordingly.
At the time of offering insurance, the insurer considers the
price of the car, charges that may be incurred in repairs, cost of the spare parts, etc. and calculates the
premium accordingly.