1.Four room-mates go out to a party where alcohol will be served. LeDawn volunteers not to drink that night so that she can drive everyone home safely. Which risk management technique did the team of room-mates use:

Group of answer choices

Loss prevention

Retention

Insurance

2.

Which of the following statements about a mutual insurer is true

Group of answer choices

Its agents represent only one carrier.

It is publicly traded. Profits are returned to shareholders as dividends or capital gains.

It has more flexibility to raise new capital than a stock insurer.

It is owned by its Insureds. Profits are returned to its policyholders, usually in the form of lower future premiums.

Loss reduction

3.

An insurance company states that for every $1.00 of premium it earns, it pays out $1.03 of claims, claims handling expenses and underwriting expenses, but nonetheless it is profitable. Is this possible, and why or why not?

Group of answer choices

No, it is not possible because the claims and expense exceed the revenues.

None of the other answers are correct.

No, it is not possible, due to the law of large numbers.

Yes, it is possible because investment gains can possibly offset underwriting losses.