What is the fundamental function of the insurance company

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What is the fundamental function of the insurance company--- in other words, what is it the insurance company does that makes the insurance mechanism work? A. It pools those insured’s having similar risks, and predicts the losses that those in the pool will suffer B. It eliminates the process of underwriting in order to sell insurance to as many people as possible, thus providing insured’s with a huge quantity discount C. It redistributes government subsidies to those who have suffered catastrophes D. It pools any insured’s who wish to purchase insurance, and attempts to predict the losses that those in the pool will suffer there are four basic components of an insurance premium. Which of the following is not one of those components A. Law of large numbers B. Earnings on investments C. Losses suffered by the members of the insurance pool D. An allowance for unexpected losses

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