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Insurance Companies Are Able to Assume So Much Risk Because

Question 32

Multiple Choice

Insurance companies are able to assume so much risk because:


A) they are stock-based companies with deep pockets.
B) they are "gamblers" who bet they are going to make money before they have to pay off any claims.
C) they share the risk among numerous policy holders.
D) they are backed by the government and will be "bailed out" if they get into trouble.

Correct Answer:

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