Advanced Placement (AP), 08.09.2021 04:00 huneymarie
A group of people who pay premiums for an insurance policy are called the risk pool.
The idea is that a large number of people pay premiums into the risk pool, and only a few number of people need to withdraw money from the risk pool. For example, a large number of people pay monthly premiums for car insurance and rarely have an accident. While those relatively small number of people who do have an accident, can withdraw money to pay for repairs.
Insurance companies often do not take everyone into the risk pool, or charge those who are deemed a higher risk, higher premiums. Should insurance companies be
required to take anybody into the risk pool?
What happens if all insurance companies refuse to Insure a certain person who is higher risk such as someone working a dangerous occupation?
(thank you!)
Answers: 1
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A group of people who pay premiums for an insurance policy are called the risk pool.
The idea is t...
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