According to the law of large numbers, what should happen as an insure
According to the law of large numbers, what should happen as an insurer increases the number of units insured?
A) The amount the insurer expects to pay in claims should decrease.
B) Underwriting expenses should decrease.
C) Actual results will more closely approach expected results.
D) The insurer’s profitability should become more variable.
ANSWER
Answer: C
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