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Exam term

Law of large numbers

The larger the number of similar exposure units, the more closely actual losses match predicted losses. It is the foundation of premium rates.

Lessons that use this term

  • Hazard types and the law of large numbers California
  • Elements of insurable risk, adverse selection, the law of large numbers, and reinsurance New York

Exam prep

  • Insurance
  • Real Estate
  • SAFE MLO
  • SIE

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