05/06/22 1. When insurance is purchased, the does so as a way transferring risk to the a. actuary / underwriter b. insurer / insured c. underwriter / insured d. insured / insurer 2. Ladonna is a beautician. She recently opened a new shop in Paris. There's a rumor that a new factory may be built near her shop, which would increase her business, but the contractors are considering another location as well. There's a 70% chance the factory will be built near Ladonna. Her shop is currently worth about $100,000, but if the factory comes through, her property value would likely double. What is the expected value of Ladonna's shop? ( .70) 200, 0JD + 30 ( 106, 0 00") 140, 000 + 30,600 170, 000 3. Attempts by persons with higher-than-average chance of loss to seek insurance coverage at standard rates is referred to as a. underwriting b. adverse selection c. fortuitous d. speculative 4. The individuals who select and classify applicants for insurance are called a. Agents b. Policyholders c. Underwriters d. Jedi Warriors e. Haters