Fundamentals of Insurance Bundled Exams with Complete Solution | Verified | Guaranteed Success

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...

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...

What is the role of the federal Government when insurers receive federal licensing? - Licensing provided only to companies that can meet strict financial standards. Established by the office of the Superintendent of Financial Institutions (OSFI). Insurers are monitored on an ongoing basis. What i...

The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. -

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 ...

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 ...

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...