Risky Business Insurance Company Insures Business Clients Against Unexpected Disasters

Multiple Choice

Risky Business Insurance Company insures business clients against unexpected disasters such as tornadoes and floods. The company operates in several regions in the U.S., and negotiates contracts following standard insurance industry guidelines. A strategic business guideline that the company would follow is

A) The amount of loss should be equal to or less than a loss covered by a competitor company.
B) There should be documentation that clearly attests to the fact that the loss of buildings, equipment, and even lives is not measurable.
C) The company's clients should be dispersed among several geographic areas so that the lack of natural disasters in some areas will compensate for more natural disasters in other areas.
D) All insurance companies that sell similar insurance would equally divide the number of claims, so as not to compete unfairly against each other.