Multiple Choice
Given the requisites of risk pooling, which of the following exposures would make the best subject of a profitable insurance pool? Assume a premium appropriate to the exposure is charged and analyze the exposure from the insurer's standpoint.
A) Insuring all the lives of college seniors in the U.S. for $10,000 each, without an initial medical exam
B) Insuring college students against their GPA falling below a 3.0
C) Insuring all the dorms on a single college campus against property damage
D) Insuring students against the theft or disappearance of textbooks
Correct Answer:
Verified
Correct Answer:
Verified
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