Which of the following statements about underwriting standards is (are

Which of the following statements about underwriting standards is (are) true?

I. One purpose of underwriting standards is to reduce adverse selection against the insurer.
II. Equitable rates should be charged so that each group of policyowners pays its own way in terms of losses and expenses.
A) I only
B) II only
C) both I and II
D) neither I nor II

ANSWER

Answer: C