An insurance policy that, on average, is expected to pay out as much in compensation as it receives in premiums is:
A) nonexploitative.
B) actuarially fair.
C) equitably reserved.
D) nonhedged.
Correct Answer:
Verified
Q83: The price of insurance is:
A)based on diversification.
B)equal
Q84: A premium is:
A)what is gained beyond expected
Q85: Insurance is:
A)a promise of compensation if a
Q86: A promise of compensation if a specified
Q87: An insurance policy is actuarially fair if:
A)the
Q89: Actuarially fair insurance is equivalent to:
A)diversification.
B)raising the
Q90: Most insurance:
A)is designed to earn a profit
Q91: Which of the following is NOT a
Q92: Which of the following is not equivalent
Q93: To hedge is to:
A)acquire an offsetting risk.
B)prevent
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