General Insurance Principles第 165 / 474 题
An insurer writing hundreds of thousands of similar homeowners policies can price them because the law of large numbers holds that:
a.writing more policies steadily lowers the chance that any one loss occurs
b.a large enough book of business removes the need for any reinsurance
c.as the number of similar exposures grows, actual losses come closer to predicted
d.each additional policy written reduces the severity of every future loss
解析
The law of large numbers says that the larger the group of similar exposure units, the more closely actual loss experience will match the expected experience, which is what makes rating possible. It does not change the odds facing any individual insured, so the choice saying more policies lower the chance of loss reverses the idea. Reinsurance is still bought to handle severity and catastrophe accumulation.
免费刷完整 474 道题库 — 无需注册。
Own the complete Personal Lines Insurance Producer guide — PDF + EPUB, $19.99 →
同考点相关题目
- A condition that increases the chance or severity of a loss, such as a worn extension cord, is a:
- Because an insurance policy is written by the insurer and offered on a take-it-or-leave-it basis, any ambiguity in the wording is generally interpreted:
- A homeowner faces the chance that a kitchen fire will destroy the house. Insurers call this a pure risk because:
- Underwriting exists largely to control adverse selection, which is the tendency of:
- A windstorm tears shingles off a roof that a poor repair had left loose. In insurance terms, the windstorm is:
- An insured leaves a car unlocked with the keys inside, reasoning that insurance would pay for it anyway. This attitude is:
最近核对： · 审核流程
PrepPass 团队 · 依据官方资料核对 California Personal Lines Insurance License Exam · 我们如何核对