Given the requisites of risk pooling, which of the following exposures would make the best subject of a profitable insurance pool? Assume a premium appropriate to the exposure is charged and analyze the exposure from the insurer's standpoint.

Given the requisites of risk pooling, which of the following exposures would make the best subject of a profitable insurance pool? Assume a premium appropriate to the exposure is charged and analyze the exposure from the insurer's standpoint.


A) Insuring all the lives of college seniors in the U.S. for $10,000 each, without an initial medical exam

B) Insuring college students against their GPA falling below a 3.0

C) Insuring all the dorms on a single college campus against property damage

D) Insuring students against the theft or disappearance of textbooks


Answer: A

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