The decision on what is the "best buy" involves consideration of:

Given the requisites of risk pooling, which of the following exposures would make the best subject of a profitable insurance pool? Assume a premium appropriate to the exposure is charged and analyze the exposure from the insurer's standpoint

A) Insuring all the lives of college seniors in the U.S. for $10,000 each, without an initial medical exam B) Insuring college students against their GPA falling below a 3.0 C) Insuring all the dorms on a single college campus against property damage D) Insuring students against the theft or disappearance of textbooks

OD's basic thrust arises from its face validity: it seems to work in making the organization more competitive

Indicate whether the statement is true or false