The items in an insurance pool must be similar to reduce subsidization.

Name: The items in an insurance pool must be similar to reduce subsidization.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Insurance pools are designed to spread the risk of loss across a group of individuals or entities. To ensure fairness in premium rates, the items in the pool must have similar risks of loss to avoid subsidization of higher-risk individuals by lower-risk ones. Therefore, the items in an insurance pool must be similar to reduce subsidization.

The Items in an Insurance Pool Must Be Similar to Reduce