The premature death of an individual is an example of a a. nondiversifiable risk. O b. pure risk O c. speculative risk. O d. physical hazard A name that encompasses all of the major risks faced by a business firm is O a. financial risk Ob.enterprise risk. O c. pure risk. O d. speculative risk. A situation or circumstance in which a loss is possible, regardless of whether a loss occurs, is called a a. loss avoidance. b. perit c. loss exposure d. deductible According to the law of large numbers. What should happen as an insurer increases the number of units insured? O a. The amount the insurer expects to pay in claims should decrease O b. Actual results will more closely approach expected results O c The insurer's profitability should become more variable Od. Underwriting expenses should decrease