BUSFIN 3300 Bundled Exams /Package Deal

financial risk - Correct Answer risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service hazard - Correct Answer A condition that creates or increases frequency or severity of loss Hedging - Correct Answer a tech...

Principle of Indemnity - ANS >> the insurer agrees to pay no more than the amount of the loss; the insured should not profit from the loss Actual Cash Value - ANS >> replacement cost less depreciation Fair Market Value - ANS >> the price a willing buyer would pay ...

Purpose of The insurer agrees to pay no more than the actual amount of the loss - Correct Answer To prevent the insured from profiting from a loss - To reduce moral hazard There are three main methods to determine actual cash value: - Correct Answer Replacement cost less depreciation ...

Risk Management - Correct Answer a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures Loss Exposure - Correct Answer any situation or circumstance in which a loss is possible, regardless of whether a loss occ...

Financial Modernization Act of 1999 (Gramm-Leach-Biley) - Correct Answer What drove insurers to become much more diversified? Mergers - Correct Answer Why has the number of life insurers, and in particular mutual life insurers, declined significantly? Financial Holding Company (FHC) - Corr...

Risk - Correct Answer Uncertainty concerning the occurrence of a loss Pure Risk - Correct Answer A situation in which there are only the possibilities of loss or no loss What types of risk does insurance deal with? - Correct Answer Pure Risk Diversifiable Risk Accidental Risk Specul...

Private Law - Correct Answer regulates disputes between private individuals or groups Ex: if a store owner is delinquent in paying rent to the landlord, the resulting dispute is governed by this Public Law - Correct Answer controls disputes between private individuals or groups and their gove...