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Why is a large number of exposure units generally required before a pure risk is insurable?

JamesLu

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Why is a large number of exposure units generally required before a pure risk is insurable?

Why is a large number of exposure units generally required before a pure risk is insurable?
A) It prevents the insurer from losing money.
B) It eliminates intentional losses.
C) It minimizes moral hazard.
D) It enables the insurer to predict losses more accurately.

Textbook

Principles of Risk Management and Insurance

Principles of Risk Management and Insurance

Edition: 12^th

Authors: Rejda, McNamara

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Toni_Annette

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JamesLu Author

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Thanks for your help!!

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