Which of the following statement is incorrect? With the risk-pooling arrangements, individual expected losses stay the same while the risk (the variance) decreases. All the answers are correct. Technically, a broker represents the insurance buyer for the purpose of arranging insurance coverage with one or more insurers. Independent agencies and brokerages are independent organizations that have agency and/or brekarage relationship with one insurer only. Risk pooling of uncorrelated losses and risk pooling with correlated losses provide the same expected value of loss