Q132
Insurance business is based on ______________.
A.
Parkinson law
B.
Newton law
C.
The theory of probability and law of large numbers
AnswerD.
Boyle law
Answer: Option C
Solution
Answer: Option C
Solution:
Insurance business is based on the theory of probability and law of large numbers. As the number of exposure units, or policyholders, increases, the probability is higher that the actual loss per exposure unit will equal the expected loss per exposure unit.