Question

what does risk pooling mean? 1 point charging higher premiums spreading risk among a large group eliminating losses insuring only high risk individuals clear selection which principle allows insurance companies to estimate future losses? 1 point risk avoidance indemnity law of large numbers risk reduction the receipt given to a life insurance applicant when the application is completed and the initial premium is received is called a(n) 1 point insurable receipt conditional receipt binding receipt

Explanation:

1. Risk pooling is a core insurance concept that distributes potential financial risks across a large group to reduce the burden on any single member.
2. The law of large numbers states that as the number of observations (policyholders) increases, predicted outcomes (losses) become more accurate, which insurers use to estimate future losses.
3. A conditional receipt is given when a life insurance applicant submits their completed application and initial premium, providing temporary coverage that depends on the applicant meeting underwriting requirements.

Answer:

1. spreading risk among a large group
2. law of large numbers
3. Conditional receipt