Adhering to the characteristics of an ideally insurable loss exposure in selling insurance help assure that

Adhering to the characteristics of an ideally insurable loss exposure in selling insurance help assure that




A. The insurer is able to charge a premium that the insured can afford to pay.
B. The losses associated with it typically involve small amounts.
C. The insurer can charge a high premium for the coverage.
D. The insurer is able to predict the amount and timing of each future loss.


Answer: A. Adhering to the characteristics of an ideally insurable loss exposure in selling insurance help assure that the insurer is able to charge a premium that the insured can afford to pay.

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