Answer

1. The loss exposure resulting from a major storm is a diversifiable risk. ( T / F ) 2. In the process of pooling, the actual loss of an exposure unit is substituted with the average loss of the group. ( T / F ) 3. Adverse selection can result from people with pre-existing health problems who obtain health insurance at standard rates. ( T / F ) 4. Social security benefits are provided by private insurers. ( T / F ) 5. Estimating the chance of loss associated with house fires in a year is an objective probability. ( T / F )