According to the Law of Large Numbers,what Should Happen as an Insurance

question 2

Multiple Choice

According to the law of large numbers,what should happen as an insurance company increases the number of loss exposures that it insures?

• A)Fewer losses should be expected to occur.
• B)The amount of premiums needed to cover losses should decrease.
• C)The volatility of the insurance company's underwriting results should increase.
• D)The difference between actual and expected results should decrease.

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