Question 1025 of 303 · California Life-Only Agent Exam
Which statement about a risk that is ideally insurable is correct?
Exactly one answer is correct.
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Correct answer to question 1025
- C: A large number of similar exposures should exist
Explanation
A large group of similar exposures lets the law of large numbers work. Losses must also be calculable and not cause widespread simultaneous harm.
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