Identify the Element of Insurance That Uses the Law of Large

question 8

Multiple Choice

Identify the element of insurance that uses the law of large numbers to reduce the possibility of missing future loss predictions.

• A)Risk mapping
• B)Risk transfer
• C)Risk severity
• D)Risk acceptance
• E)Risk pooling

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Definitions:

Mood-congruent Memory

The tendency to recall experiences that are consistent with one's current mood.

State-dependent Memory

The phenomenon where information learned in a particular state of mind is more easily recalled when in that same state.

Encoding Strategies

Techniques used to process and store information in memory more effectively.

Cues in Retrieval

Stimuli or signals that help bring a memory or piece of information to mind, facilitating the process of recalling information.