Identify the element of insurance that uses the law of large numbers to reduce the possibility of missing future loss predictions.

Name: Identify the element of insurance that uses the law of large numbers to reduce the possibility of missing future loss predictions.
Brand: Quizplus
Rating: 5.0 (62 reviews)

Question

Quizplus · Accepted Answer

Risk pooling utilizes the law of large numbers to spread risk across a large number of policyholders, reducing the impact of individual losses and making future loss predictions more accurate.

Identify the Element of Insurance That Uses the Law of Large