Insurance carriers use different means of collecting data in order to determine the rates for their products. What is one concept insurance carriers use that believes that as the sample size in question grows, the average of results obtained from this sample will be closer to the expected value?

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The topics covered on the Property & Casualty Insurance Exam depend on the specific state board in the United States. Below are some probable categories for this exam. Types of Policies, which includes limited-pay, single-premium life, and ordinary whole life. Parts of a Policy, which includes declarations, agreements, conditions, and exclusions. Policy Riders and Provisions, which includes waiver of premium, accidental death dismemberment, insurance clause, owner’s rights, and payor benefits. Completing the Application, which includes underwriting, warranties, replacement, insurable... Show more

Insurance carriers use different means of collecting data in order to determine the rates for their products. What is one concept insurance carriers use that believes that as the sample size in question grows, the average of results obtained from this sample will be closer to the expected value?