Finance

Apex Insurance Company wrote a large number of property insurance poli

Apex Insurance Company wrote a large number of property insurance policies in an area where earthquake losses could occur. When the president of Apex was asked if she feared that a severe earthquake might put the company out of business, she responded, “Not a chance. We transferred most of that risk to other insurance companies.” […]

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Date: September 19th, 2020

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.     […]

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Date: September 19th, 2020