Insurance Companies Can Usually Cover the Claims of Policyholders Because

question 15

Multiple Choice

Insurance companies can usually cover the claims of policyholders because:

• A) the incidence of claims normally averages out across all policyholders.
• B) they issue a very limited number of policies.
• C) they are fully insured by the U.S. government.
• D) their stockholders will cover any cash shortfalls encountered by the company.

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Definitions:

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