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    Question

    In the context of insurance, what does "exposure" refer

    to?
    A The amount of risk faced by the insured. Correct Answer Incorrect Answer
    B The number of insurance policies sold by an insurer Correct Answer Incorrect Answer
    C The amount of money invested by an insurer Correct Answer Incorrect Answer
    D The number of claims received by an insurer Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The correct answer is A. The amount of risk faced by the insured. Exposure refers to the amount of risk that an insurer is potentially liable for.

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