Part I: True or False: (5 marks, 1 each) (ILOs: A1, A2)

1. The loss exposure resulting from the Covid-19 pandemic is a pure and 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 high-risk drivers who obtain car 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 a subjective probability.

( T / F )