a. 2/3 b. 2/5 c. 3/10 d. 1 8. Which of the following is NOT a basic characteristics of insurance B a. Pooling of losses b. Payment of non-fortuitous losses c. Risk Transfer d. Indemnification 9. Assume that 1000 farmers in St. Catherine agree that is any farmers house is damage by fire the other members of the group will indemnify the actual loss of the unlucky farmer. Assume also that each farmer's home is worth $200,000 and on average one home burns each year. What is the substitution that is being facilitated by this pooling? B a. An average loss of $200 for an actual loss of $200,000 b. An average loss of $200,000 for an actual loss of $200,000,000 c. An average loss of $200,000 for an actual loss of $200 d. An average loss of $200 for an actual loss of $200,000,000 10. What is the ideal requirement of an insurable risk? D a. The loss should be catastrophic b. The loss must be accidental and intentional c. There must be a large number of non-exposed units d. The chance of loss must be calculable 11. Which of the following is NOT a provision to control adverse selection c a. Underwriting b. Extra-premium c. A suicide clause d. A pre-existing clause 12. Protection against the decline in price of agricultural products is an example of B a. Private Insurance b. Hedging c. Government insurance d. Property and Casualty Insurance 13. The major social and economic benefit of insurance does NOT include A a. Enhancement of debit b. Indemnification of loss c. Reduction in worry and fear d. Loss prevention 14. The major social and economic cost of insurance does include c a. Enhancement of debit b. Reduction in worry and fear c. Loss prevention d. Fraudulent claims 15. Examples of inflated claims include all the following, except: C a. Attorneys for plaintiffs sue for high-liability judgments that exceed the true economic loss of the victim b. Insureds inflate the amount of damage in auto collisions claims so that insurance payments will cover the collision deductible c. Disabled persons after malinger to collect disability income benefits for a shorter duration d. Insureds exaggerate the amount and value of property stolen from a home or business 16. Which of the following is NOT an example of Risk Control D a. Avoidance