Question

an agent who conducts business in a different state and where they are originally licensed in is labeled as a
captive agent
career agent
foreign agent
domestic agent
out of the following answer options, which statement is true regarding law of large number :
amongst a similar type of catastrophic losses
the larger the number the more accurate the predicition
statistics for loss
determines the cost of insurance
which situation best represents a moral hazard?
slippery floors at work
chronic illness
intentionally setting a fire to collect insurance money

Explanation:

1. For the first question: A foreign agent is defined as someone licensed in their home state who conducts business in another state.
2. For the second question: The Law of Large Numbers states that as the sample size increases, the accuracy of predictions about outcomes improves.
3. For the third question: Moral hazard refers to a situation where a party takes intentional risky behavior because they are protected from the consequences (like insurance coverage), such as setting a fire to collect insurance funds.

Answer:

1. foreign agent
2. the larger the number the more accurate the prediction
3. intentionally setting a fire to collect insurance money