For insurers to utilize pooling most effectively and present catastrophic losses, the insured exposure units need to be

Insurance

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For insurers to utilize pooling most effectively and present catastrophic losses, the insured exposure units need to be

Options

A. Correlated.
B. Independent.
C. Adjacent.
D. Different.

Answer: B. For insurers to utilize pooling most effectively and present catastrophic losses, the insured exposure units need to be independent.

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