State Insurance Regulators Have Sometimes Reacted by Passing Rules That

Multiple Choice

State insurance regulators have sometimes reacted by passing rules that attempt to set low premiums for insurance. But over time, ___________________________ must hold: the average amount received by individuals must equal the average amount paid in premiums.

A) the fundamental law of caveat emptor
B) the fundamental law of insurance
C) the fundamental principle of profitability
D) the fundamental principle of actuarial fairness