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Exposure Units Are Susceptible to Dependent Loss When

Question 25

Multiple Choice

Exposure units are susceptible to dependent loss when:


A) frequency of loss affects the severity of loss of an exposure unit.
B) loss of one exposure units causes the loss of a complimentary unit.
C) adverse selection occurs due to a moral hazard.
D) the frequency and severity of two exposure units are identical.
E) loss to one exposure unit affects the probability of loss to another.

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