Question

the principle that states that larger the number of exposure units, the more predictable the number of future losses will be is known as

• law of large numbers
• adverse selection
• predictable loss of factor
• future loss equation

a license granted by state insurance authority to a company is known as

• life license
• certificiate of authority
• sellers permit
• conditional receipt

having diabetes will be categorized as which type of hazard

• moral
• morale
• physical
• health

Explanation:

1. The described principle is a core insurance/statistics concept where larger sample sizes improve loss predictability.
2. State insurance authorities issue this specific license to allow companies to operate in the state.
3. Diabetes is a physical condition that increases insurance risk, fitting this hazard category.

Answer:

1. Law of large numbers
2. Certificate of Authority
3. Physical