Which of the following statements regarding insurance and ga…

Which of the following statements regarding insurance and gambling is (are) true?I. Insurance is used to handle existing pure risks, while gambling creates a new speculative risk.II. Insurance usually involves risk avoidance, while gambling typically involves only risk reduction.

ABC Insurance Company plans to sell homeowners insurance in…

ABC Insurance Company plans to sell homeowners insurance in five Western states. ABC expects that 8 homeowners out of every 100, on average, will report claims each year. The variation between the rate of loss that ABC expects to occur and the rate of loss that actually does occur is called