Part I: True or False: (2.5 marks, 0.5 each) (LO's A1, CI) 1. Insurance is a risk treatment method that is best used for losses that happen frequently, and of which the severity is low. CT/F) 2. Calculating the chance of loss associated with the manufacturing of defective products in a production cycle represents a subjective probability. CT/F) 3. The loss exposure resulting from a coronavirus is a pure and diversifiable risk. (T/F) 4. Adverse selection can result from high-risk drivers who obtain car insurance at standard rates. (T/F) 5. During an insurance soft market condition, a Company's Risk Manager would prefer to obtain more insurance coverages and renegotiate existing terms. LT/F)