Final answer:
In the P&C (Property and Casualty) formula, the risks are referred to as the risk groups. These risk groups are comprised of individuals who share similar risks of experiencing an adverse event, such as car theft or home robbery.
Step-by-step explanation:
In the P&C (Property and Casualty) formula, the risks are referred to as the risk groups. These risk groups are comprised of individuals who share similar risks of experiencing an adverse event, such as car theft or home robbery. By classifying individuals into risk groups, insurance companies can determine appropriate premiums based on the level of risk each group presents.