QUESTION 44 2.17391 points Save Answer Which of the following statements about the ISO businessowners policy is true? O The policy covers business personal property but does not cover buildings. O The policy is designed to meet the special needs of large businesses. O The current form is written on a named-perils basis, but an "open-perils" (all risks) endorsement is available. O It provides business income and extra expense coverage as an additional coverage. QUESTION 45 2.17391 points Save Answer Apex Insurance Company wrote a large number of property insurance policies in an area where earthquake losses could occur. When the president of Apex was asked if she feared that a severe earthquake might put the company out of business, she responded, "Not a chance. We transferred most of that risk to other insurance companies." An arrangement by which an insurer that initially writes insurance transfers to another insurer part or all of the potential losses associated with such insurance is called O reinsurance. O loss avoidance. O hedging. O speculating. QUESTION 46 2.17391 points Save Answer JKL Insurance Company estimates that 14 out of every 100 homeowners it insures will file a claim each year. Last year, JKL insured 200 homeowners. According to the law of large numbers, what should happen if JKL insures 2,000 homeowners this year? O The total number of claims filed by JKL policyowners should decrease. O The actual results will more closely approach the expected results. O The average size of loss will decline in value. O The total dollar value of claims will decrease