A. Insurance coverage relies on the law of large numbers, meaning:

A. Events that are statistically difficult to predict for a specific individual are more predictable for a large number of individuals.

B. Events that are statistically difficult to predict for a large number of individuals are more predictable for an individual.

C. Insurers can adequately predict the losses expected for an individual, but are unable to predict the losses expected for large numbers of individuals.

B. Which of the following is not a category of property risk?

A. Loss of value from economic obsolescence.

B. Liability losses resulting from negligent use of property.

C. Loss of property due to fire, wind, theft, or others hazards.