The Primary Reason the Insurance Mechanism Functions Successfully Is The

question 69

Multiple Choice

The primary reason the insurance mechanism functions successfully is the:

• A)existence of adverse selection
• B)ease with which underwriting results can be measured
• C)predictability of losses via the law of large numbers
• D)existence of many non-industrial nations

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Definitions:

Innovation

The process of creating new ideas, products, or methods, often leading to improvements or contributing to significant changes in society.

Global Economy

An interconnected marketplace where goods, services, and labor are traded worldwide, and economic events in one part of the world can have an impact on other parts.

Foreign-Owned Company

A business entity that is owned by individuals or corporations from a country different from where the company operates.

Empowerment

The process of granting individuals or groups more power and responsibility to make decisions and control over their work or life situations.