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every policy of fire insurance ly covers fire,smoke, and specified types of explosions required by law to cover fire, windstorm,and lightning s fire,explosion, and windstorm required by law to cover at least fire, lightning, and specified types of explosions - required by law to cover at lea...

Probably the best way to define risk is to say, "Risk is the chance of financial loss as a result of loss or damage to the object of insurance or some other happening." - True. Pure Risk: Provides only the potential for financial loss with no chance of gain or profit. Insurance is provided for ...

The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. - the major function of insurance is to share the losses of the few among the many What are the five functions of insurance? - 1. spread of risk (major function) 2. basis of credit system 3. ...

A loss exposure is defined as: (A) a loss that might occur (B) an undesirable end result of a risk (C) the largest possible loss (D) the probability of a loss - The answer is (A) by definition Which of the following statements concerning the beneficiary provisions in a life insurance policy is...

Risk and Perils are the ________ of Loss - possibility Social insurance emphasizes ___________ rather than ____________ - individual adequacy, social equity ____________ are a form of partial risk retention - Deductibles Insurance companies are________ if they are domiciled in another - Foreign ...

A building valued at $120,000 is insured for $30,000 and there is an 80% co-insurance clause on the policy. The building was totally destroyed by fire last weekend. The insured would receive a settlement of: a. 7,000 b. 12,000 c. 30,000 d. 37,5000 - c. 30,000 The reinstatement clause containe...

Insurance plays an important role in managing financial risk. The main purpose of Insurance is to: A. Enable the consumer to obtain loan or mortgage. B. Provide employment and investment capital. C. Allow spread of risk. D. Reduce losses through loss prevention and loss reduction. - C. Allow sp...