According to the Law of Large Numbers,what Should Happen as an Insurer

question 38

Multiple Choice

According to the law of large numbers,what should happen as an insurer increases the number of units insured?

• A)The amount the insurer expects to pay in claims should decrease.
• B)Underwriting expenses should decrease.
• C)Actual results will more closely approach expected results.
• D)The insurer's profitability should become more variable.

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Definitions:

Indorsement

Indorsement refers to the act of signing one's name on the back of a negotiable instrument, such as a check, thereby transferring rights or title to another party.

Film Arts

The field concerned with the creation, analysis, and critique of films as a form of artistic expression.

Conditional Indorsement

An endorsement on a negotiable instrument that specifies conditions under which the endorser can be held liable.

Indorsee

A person or entity to whom a negotiable instrument, such as a check or promissory note, is legally transferred.