Exam DISC-RM Practice Question 24

Study guide: Exam DISC-RM

An insurer writes homeowners policies in many states. Determine which of the following risks the insurer can reduce, per policy, by writing more policies in more independent locations.

• I. Kitchen fires that strike individual homes independently of one another

• II. A nationwide rise in inflation that raises the cost of repairing every claim

• III. Burglaries of individual homes in different cities

• A) I only

• B) I and III only

• C) II and III only

• D) I, II and III

Answer this question and see the worked solution

Concepts tested

• Risk Classifications
• Risk Taxonomies
• Law of Large Numbers

More questions from this set

• Exam DISC-RM Practice Question 23
• Exam DISC-RM Practice Question 25