If Insurers Didn't Practice Pooling, What Would Happen

question 38

Multiple Choice

If insurers didn't practice pooling, what would happen?

• A) They would save a lot of time and money by not having to do difficult calculations.
• B) They would make a handsome profit since they would get to sell a lot of insurance to a lot of people.
• C) The insurance mechanism would become unfeasible.
• D) The insurance mechanism would become the largest money-making venture in the United States.

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Definitions:

Telepathy

The purported transmission of information from one person to another without using any of our known sensory channels or physical interaction.

ESP

Short for extrasensory perception, the supposed ability to gain information without using the known five senses.

External Distractions

Outside factors that can divert individuals' attention away from the task at hand.

Networking Activities

involve actions taken to build, maintain, and use interpersonal connections and relationships beneficial for professional or personal purposes.