The Risk of an Insurer with More Exposures Is Relatively

question 15

Multiple Choice

The risk of an insurer with more exposures is relatively lower than that of an insurer with fewer exposures under the same expected distribution of losses.How do small insurers reduce the uncertainty in predicting losses?

• A)They use the sharing of data that exists in the insurance industry.
• B)They try to reduce the severity of exposures.
• C)They use the risk avoidance method to reduce losses.
• D)They use the risk retention method to reduce losses.
• E)They cannot reduce the uncertainty in predicting losses.

Appreciate the interdisciplinary nature of psychology and its relationship with other fields.

Understand the importance of empirical evidence and scientific methods in psychology.

Identify the ethical considerations in psychological research and practice.

Recognize the theoretical diversity within psychology and its implications for understanding behavior and mental processes.

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Definitions:

Transformative

Relating to or causing a significant change in form, structure, or appearance.

Converting

The act of changing something into a different form or the process of adopting a new belief system or religion.

Phases

Describes distinct stages or periods in a process of development or change.

Collective Conscience

A set of shared beliefs, ideas, and moral attitudes which operate as a unifying force within society, according to Emile Durkheim.