Why Is a Large Number of Exposure Units Generally Required

question 64

Multiple Choice

Why is 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:

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The strategic process of setting, adapting, and potentially negotiating prices of products or services to achieve financial goals.

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Future Services

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