Question $1$:The requirement that losses should be accidental and unintentional in order to be insurable results in which of the following?I.Decrease in moral hazard II$.$More accurate prediction of future losses Question $2$:A group of farmers agreed that if any farmer suffered a property loss, the loss would be spread over the entire group. In this way, each farmer is responsible for the average loss of the group rather than the actual loss that each farmer sustained. Which characteristic of insurance is embodied in this agreement? Question $3$:XYZ Insurance Company writes coverage for most perils which can damage property. XYZ$,$ however, does not write flood insurance on property located in flood plains. Which requirement of an ideally insurable risk might be violated if XYZ wrote flood insurance on property located in flood plains?

Question $4$:Two business owners own identical buildings valued at $$10$ millions. There is a $5\%$ chance each building will be destroyed by a peril in any yearLoss to either building is an independent event. Calculate expected value and standard deviation of the loss for each owner if$($a$)$ The owners are independent.$($b$)$ The owners pool their loss exposures, and each agrees to pay an equal share of any loss that might occur.