If the premium loading is zero then purchasing insurance ______________

Looking for the answer to the question below related to Insurance?

If the premium loading is zero then purchasing insurance ______________

 Options:

 

A. does not change the persons expected wealth
B. changes the persons expected wealth
C. increases the variability of wealth
D. no change in expected wealth

 

The Correct Answer Is:

  • A. does not change the persons expected wealth

Conclusion

I hope you got the answer to your question.

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