Insurance Fundamentals Exam Package Deal 2023

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 spr...

Chapter 1 - Intro List the 5 functions of insurance: - 1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity Definition of insurance (3 parts) - 1) insurance provides a ...

Spread of Risk - - "The losses of few are shared among the many" - A large pot into which all insureds place their premiums - This pot provides for payment for the losses of those who have claims Basis of Credit System - Consumer access to insurance frees up credit Eliminates Worry - Encourage...

What is the major function of insurance? - to allow the spread of risk What are the five important functions of insurance? - 1) insurance is the shifting of financial responsibility for a loss 2) payment will be made only in the event of an insured risk 3) the amount of payment is restricted to ...

Chapter 1 - Introduction to General Insurance 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 (...

Agent/Producer - a legal representative of an insurance company; the classification of producer usually includes agents and brokers; agents are the agents of the insurer Applicant or proposed insurer - a person applying for insurance Consent - permission to do something Insurable Interests - the...

Main purpose of Insurance - Allow the spread of risk Definition of Insurance - -Payment's made only when a certain peril has damaged the insured object -Payment's limited to actual amount of loss, no more and no less -There's no payment for losses that are deliberately caused by an insured. F...

Risk - Uncertainty concerning the occurrence of a loss Loss Exposure - Any situation or circumstance in which a loss is possible, regardless of whether a loss occurs Objective vs Subjective Risk - Objective risk is defined as the relative variation of actual loss from expected loss Subjective r...

nsurance - A Contractual arrangement that protects against lost Insurer - The party who agrees to indemnify (Geico) Indemnify - To make good the loss of a suffering party Insured - The party covered or protected by insurance Beneficiary - a person who derives advantage from something, especially...