What Is the Effect When the Most Favorably Situated Exposures

question 61

Multiple Choice

What is the effect when the most favorably situated exposures leave a (potential) insurance pool?

• A) Premiums go down.
• B) Nothing
• C) The cost of insurance needs to be borne by more policyholders.
• D) The cost of insurance needs to be borne by fewer policyholders.

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Definitions:

Pneumatic Buffers

Tools powered by compressed air used for polishing surfaces or buffing out scratches, commonly used in automotive and manufacturing applications.

Truck Frame

A structural component of a truck, consisting of a rigid structure that supports the engine, body, and cargo area.

5th Wheel Pivot

A rotating platform mechanism, usually found in trailers, that provides pivotal movement around its axis for better maneuverability.

Angle Iron Brackets

Angle iron brackets are L-shaped supports made from angle iron, used in construction and industrial applications to provide structural stability and support.