Insurance companies determine risk exposure by which of the following?
Law of large numbers and risk pooling
Which of these are considered to be events or conditions that increase the chances of an insured's loss?
Hazards
People with higher loss exposure have the tendency to purchase insurance more often than those at average risk. This is called
adverse selection
Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks?
Risk avoidance
How do insurers predict the increase of individual risks?
Law of large numbers
An example of risk sharing would be
Doctors pooling their money to cover malpractice exposures
Which of these techniques will remove the risk of losing money in the stock market by never purchasing stocks?
Risk avoidance