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Fair Insurance Is a Contract Between an Insurer and a Policyholder

Question 51

Multiple Choice

Fair insurance is a contract between an insurer and a policyholder in which.


A) the value of the contract to the policyholder is negative.
B) the value of the contract to the policyholder is zero.
C) the risk of the contract to the policyholder is diversifiable.
D) the value of the contract to the policyholder is positive.

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