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

1. The loss exposure resulting from a flood is a speculative risk. ( T / F )

2. In the process of pooling, actual losses of exposure units are substituted by the average loss of the group. ( T / F )

3. Adverse selection can result from smokers who obtain health insurance at standard rates. ( T / F )

4. Unemployment benefits are provided by private insurers. ( T / F )

5. Estimating the chance of loss associated with premature death is an objective probability. ( T / F )