Exam (elaborations)
WEBCE Questions and Answers 2024 (A+ Solutions) (1)
- Course
- Institution
WEBCE Questions and Answers 2024 (A+ Solutions) (1)
[Show more]
Seller
Follow
modocko752
Content preview
WEBCE Questions and Answers 2024 (A+Solutions)
Risk - ANS-chance of loss
Loss - ANS-an unplanned reduction in economic value
What risk is insurable? - ANS-pure risk
What are the two types of risk? - ANS-pure risk and speculative risk
Involves the possibility of a loss? - ANS-pure risk
Can result in either loss or gain? - ANS-speculative risk
Loss - ANS-an unplanned reduction in economic value
Direct loss - ANS-immediate result of an event involving an insured peril
Indirect loss - ANS-a loss that results from a direct loss
Loss exposure - ANS-being subject to possible loss
Underwriting Process - ANS-the process that determines if the risk proposed for
insurance should be accepted or rejected
Peril - ANS-the direct cause of a loss and the event that insurance protects against
Life & health insurance covered perils include: - ANS-death, disability, & sickness
Hazard - ANS-a condition that increases the chance of loss due to a peril or increases
the severity of a loss
3 categories of hazards - ANS-moral hazards, morale hazards, & physical hazards
, Moral Hazards - ANS-these are character weaknesses, habits, and risky activities that
increase the possibility of loss
Morale Hazards - ANS-these are a state of mind or attitudes that create an indifference
to loss
Physical Hazards - ANS-these are physical conditions that increase the chance of loss
Risk Management - ANS-the natural process we all go through to contend with the
hazards and perils we face daily
Common risk management techniques: - ANS-avoid the risk, reduce the risk, retain the
risk, share the risk with others, & transfer the risk to someone else
Risk Avoidance - ANS-one of the ways we manage risks
Risk Retention - ANS-choosing to use existing assets to pay for any losses if the risk
becomes a reality; also known as the "do nothing" option
Deductibles - ANS-a stated sun of money that the insured must pay before any major
medical policy benefits are paid
Risk Sharing - ANS-one of the oldest ways to manage risks; similar to buying insurance
in that a part of the risk is transferred to others
Risk Transfer - ANS-and individual or business transfers the risk of loss to an insurance
company in return for a premium
The risk management technique of what is the basis for most insurance today? -
ANS-risk transfer
Insurable Risk - ANS-an applicant is an insurable risk to the insurer if he or she meets
certain criteria for insurability; if these criteria are met, then the applicant is insurable.
To be insurable, a risk must conform to certain standards: - ANS-definable, measurable,
insured's control, large group of similar risks, financially catastrophic, & exclusions
Underwriters - ANS-determine if the proposed risk should be accepted or rejected
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modocko752. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now