Why Are a Large Number of Exposure Units Generally Required

question 44

Multiple Choice

Why are a large number of exposure units generally required for a risk to be insurable?

• A)It prevents the insurer from losing money
• B)It guarantees that losses will be unintentional and measurable
• C)It enables the insurer to better predict the frequency and severity of losses (moderate)
• D)It minimizes physical hazards

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Definitions:

Autism Spectrum Disorder

A developmental disorder that affects communication and behavior, ranging from mild to severe.

Socioeconomic Status

The social standing or class of an individual or group, often measured as a combination of education, income, and occupation.

Savants

Individuals who demonstrate extraordinary abilities in a specific area, such as memory or music, often alongside developmental conditions like autism.

Moderate Intellectual Disability

A level of intellectual disability characterized by significantly below-average intellectual functioning and limitations in adaptive behavior, manifesting during the developmental period.