For insurers to utilize pooling most effectively and present catastrophic losses, the insured exposure units need to be

For insurers to utilize pooling most effectively and present catastrophic losses, the insured exposure units need to be



A. Correlated.
B. Independent.
C. Adjacent.
D. Different.



Answer: B. For insurers to utilize pooling most effectively and present catastrophic losses, the insured exposure units need to be independent.

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