Author Question: Which of the following is implied by the pooling of losses? A) sharing of losses by an entire ... (Read 112 times)

vHAUNG6011 · **on:** Jul 11, 2018

Which of the following is implied by the pooling of losses?

A) sharing of losses by an entire group
B) inability to predict losses with any degree of accuracy
C) substitution of actual loss for average loss
D) increase of objective risk

Question 2

According to the law of large numbers, what should happen as an insurer increases the number of units insured?

A) The amount the insurer expects to pay in claims should decrease.
B) Underwriting expenses should decrease.
C) Actual results will more closely approach expected results.
D) The insurer's profitability should become more variable.