The Idea of an Insurance Company "Pooling" the Risk Means

question 52

Multiple Choice

The idea of an insurance company "pooling" the risk means that

• A) the risk is completely eliminated from society.
• B) the insurance company requires buyers to pay a large deductible.
• C) the risk is spread over a large population.
• D) the insurance company insists on a pooling equilibrium.
• E) moral hazard and adverse selection are eliminated.

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Definitions:

Output Module

A component of a PLC or other control system that provides the interface for output signals to external devices or equipments.

Input Module

A component in programmable controllers or computers that receives and processes input signals from sensors or other devices.

Ladder Program

A graphical programming language resembling a ladder used for programming PLCs, where the vertical lines represent the power supply and each rung represents a rule executed by the PLC.

Total Memory

The aggregate amount of digital storage capacity available in a computer system or device, encompassing RAM, ROM, and any other data storage types.