1) In applying the Law of Large Numbers, what precautions must insurers take, and what difficulties do they face?

1) In applying the Law of Large Numbers, what precautions must insurers take, and what difficulties do they face?

2) Why are different mortality tables used, rather than just one standard table for all calculations? Discuss.

1.I. Risk pool may not be homogenous. Insurers might experience difficulty tocollecting data from participants who do not experience losses.Precaution: Insurers should carry out a medical check...