Which of the following insurance concepts is founded on the ability to predict the approximate number of deaths or frequency of disabilities within a certain group during a specific time.
A. Principle of large loss B. Quantum insurance principle C. Indemnity law D. Law of large numbers - ANS>>Law of large numbers
The owner of a camera store is worried that her new employees may help themselves to items from inventory without paying for them. What kind of hazard is described.
A. Physical hazard B. Ethical hazard C. Morale hazard D. Moral hazard - ANS>>Moral hazard
All of the following actions are examples of risk avoidance EXCEPT
A. Bill won't fly in an airplane B. Wendy keeps her money out of the stock market C. Pat pays his insurance premium D. John never drives a car - ANS>>Pat pays his insurance premiu
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