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3. An insurer is evaluating its underwriting risks in four different policy lines in Miami, Florida. Assuming that each line has the same number of
3. An insurer is evaluating its underwriting risks in four different policy lines in Miami, Florida. Assuming that each line has the same number of policies, with equal mean and standard deviation of losses, and all else being equal, which of the following policy lines would require the insurer to set aside the largest surplus amount?
Damages from house fires in Miami.
Flood damages to homes in Miami.
Automobile accidents in Miami.
Workplace accidents in Miami.
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