The law of large numbers allows insurance companies to
A) hold capital market instruments as assets without fearing overly large numbers of defaults.
B) hold money market instruments as assets without fearing overly large numbers of defaults.
C) predict the average number of occurrences of insurable events in a large population of policyholders.
D) charge higher premiums than necessary, knowing that large numbers of individuals will pay them.
Correct Answer:
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Q56: In what year did the mutual fund
Q57: What percentage of the mutual fund market
Q58: Closed-end mutual funds
A)will always redeem shares issued.
B)are
Q59: The portfolios that mutual funds offer to
Q60: Money market mutual funds
A)hold portfolios of stocks.
B)hold
Q62: In which of the following have pension
Q63: A defined benefits plan
A)is always fully funded.
B)may
Q64: An insurance premium is a
A)payment made by
Q65: To deal with difficulties in administering pension
Q66: Vesting refers to
A)the right of the holder
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