Three students, Jack, Mary and Cathy talk about the excess of insurance contracts. Jack says, "All else being equal, the policy is underwritten at a lower premium as the excess of policy increases." Mary says, "The insurer, who underwrites the policies at the fair premium, can make a higher expected profit by underwriting the policy with higher excess." Cathy says, "Among policies underwritten at the fair premium, the risk-averse insured is always willing to buy the policy with higher excess." Whose statement is correct? Question 16Select one: a. Jack only b. Jack and Mary c. Jack and Cathy d. All of them e. None of them