Companies A and B have been participating in a pooling arrangement for some time, but they are considering the possibility of adding more members to the pool. What would be the effect on the distribution of the average losses if more participants were added to the pool, assuming each has a loss distribution that is identical to, and independent from, the distributions for Companies A and B? (Check all that apply.) higher standard deviation of losses lower standard deviation of losses higher expected loss |lower expected loss same standard deviation of losses same expected loss You are the insured under both a personal auto insurance policy and a life insurance policy. Assuming the insurance company pays the claims described below, in which of the following cases would the principle of subrogation apply? (Check all that apply.) you file a claim under your auto physical damage coverage for damage to your car caused when you crash it into a tree you file a claim under your auto physical damage coverage for damage to your car caused by a taxi driver pedestrian injured by you in an auto accident files a claim under your auto liability coverage for her medical expenses a your spouse files a claim under your life insurance when you are killed in an auto accident caused by a drunk driver An insurance company has instructed one of its agents not to issue binders on any property insurance policies where the limit of insurance exceeds $1 million. When a longstanding client (who is unaware of this restriction) calls the agent and requests a policy with a $2 million limit, the agent tells him that it will "be no problem" and issues a binder to the customer. If the client later suffers a loss on the property, which of the following statements is true? the insurer must pay the loss since the agent had apparent authority to issue binders the insurer is not obligated to pay the loss since the agent had no authority to issue the binder the insurer is not required to pay the loss since issuing a binder is not considered a valid "acceptance" for property insurance the insurer must pay the loss since the agent had implied authority to issue binders the insurer must pay the loss since the agent had the express authority to solicit customers for the insurer