According to the law of large numbers, what should happen as an insura

According to the law of large numbers, what should happen as an insurance company increases the number of loss exposures that it insures?

A) Fewer losses should be expected to occur.
B) The amount of premiums needed to cover losses should decrease.
C) The volatility of the insurance company’s underwriting results should increase.
D) The difference between actual and expected results should decrease.

ANSWER

Answer: D