The Insurance Industry Operates on the Principles Of

question 44

Multiple Choice

The insurance industry operates on the principles of:

• A)risk trading and diversification.
• B)exploitation and capital accumulation.
• C)moral hazard and irrationality.
• D)adverse selection and diminishing marginal utility.

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Definitions:

Constitutional Rights

The rights guaranteed to the citizens by the constitution, protecting them from governmental infringement.

Criminal Defendant

An individual or entity accused of committing a criminal act and facing legal proceedings in a court of law.

Reasonable Suspicion

A standard in law enforcement that allows for the brief detention and investigation of individuals based on specific and articulable facts suggesting criminal activity.

Probable Cause

A reasonable basis for believing that a crime may have been committed, justifying further investigation or the issuance of a warrant.