Final answer:
The insurance company uses Actuarial Science to determine insurance premiums by assessing the risk of car accidents amongst teenage drivers.
Step-by-step explanation:
When an insurance company determines insurance premiums based on the frequency of car accidents among teenage drivers compared to the total number of teenage drivers, this process is an example of using Actuarial Science. Actuarial science applies mathematical and statistical methods to assess risk in the insurance and finance industries by evaluating the likelihood of future events and designing creative ways to reduce the likelihood of undesirable events or to lessen their impact when they do occur. In the scenario provided, insurance companies analyze the historical data to calculate the risk and therefore set the premiums accordingly.