Part I: True or False: (5 marks, 1 each) (ILO's: 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)