Why is a large number of exposure units generally required for a risk to be insurable?
A) It allows the insurer to accurately predict the aggregate dollar amount of loss.
B) It allows for at least some losses to occur.
C) It reduces speculative risk.
D) It reduces both the speculative risk and pure risk.
A
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Which of the following statements is not true regarding FICA taxes paid?
A) These taxes fund both Social Security and Medicare. B) Employers are required to match employee FICA contributions. C) All FICA taxes apply to your total income. D) There is a limit on how much of your income will be taxed for Social Security.