A. What is insurance? Justify giving three (3) reasons why Insurance service is important to the Zambian Society. (6 Marks) B. Explain the following terms in relation to insurance; I. The law of large numbers (2 Marks) II. How the law of numbers make it possible to attract clients for insurance companies. (2 Marks) III. The mean value of the loss distribution. (2 Marks) IV. The standard deviation of the loss distribution. (2 Marks) C. Identify and give three (3) examples regarding the approaches that Primary Insurers use to deal with catastrophic losses. (6 Marks) D. What is the meaning of adverse selection and describe two (2) ways underwriters use to prevent losses arising from effects of adverse selection. (5 Marks) [TOTAL: 25 MARKS]