An insurer having a large number of similar exposure units is considered important because

An insurer having a large number of similar exposure units is considered important because


A) the insurer can decrease its reserves
B) the greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums
C) its financial rating will improve
D) the greater the number insured, the more premiums it collects


Answer: B) the greater the number insured, the more accurately the insurer can predict losses and set appropriate premiums

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