What is the so-called Risk Charge?

What is the so-called Risk Charge?


A) Risk Charge represents how much an insurance company should charge for people not paying their insurance premium.

B) Risk Charge represents the margin of error arising from estimating an unknown variable.

C) Risk Charge represents the standard deviation of the variance.

D) Risk Charge represents how much an insurance company should charge for uncertainty.


Answer: B

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