Which of the Following Statements About the Expected Average Loss

question 8

Multiple Choice

Which of the following statements about the expected average loss is not correct?

• A) The average loss is guaranteed to happen in the upcoming year.
• B) The average loss will be expressed in dollars.
• C) The average loss is a tool for risk managers to handle future risks.
• D) The average loss can be estimated by multiplying the average loss severity with the average loss frequency.

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Definitions:

Independent Contractor

An individual who provides services to another entity under terms specified in a contract or within a verbal agreement, unlike an employee who works regularly for a single employer.

Supervision

The act of overseeing or managing activities and personnel to ensure that tasks are performed correctly, safely, and efficiently.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment.

Unemployment Statutes

Laws established to provide financial assistance to individuals who are unemployed through no fault of their own, aiming to stabilize the workforce and economy.