A Fair Insurance Policy Is One Whose Premium

question 158

Multiple Choice

A fair insurance policy is one whose premium:

• A)is zero.
• B)allows the insurance company to profit.
• C)equals the expected value of the claims.
• D)is higher as the probability of a claim decreases.

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Definitions:

Anticommunist Regimes

Governments or political systems that are opposed to communism, often focusing on the suppression or elimination of communist ideologies within their territories.

South Africa

A country located at the southern tip of Africa, noted for its varied topography, rich cultural heritage, and history of apartheid, which was officially dismantled in 1994.

Democratic Constitution

A foundational document for a government, grounded in democratic principles, which outlines the structure, functions, and limitations of government power.

U.S. Military

The armed forces of the United States, responsible for defending the country against external threats and ensuring national security.