XCEL Chapter 2 - Nature of Insurance Exam Practice Questions and Answers (100% Pass)
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Course
Xcel
Institution
Xcel
XCEL Chapter 2 - Nature of Insurance Exam Practice
Questions and Answers (100% Pass)
How do insurers predict the increase of individual risks? - Answer️️ -Law
of large numbers
Which of the following is considered to be an event or condition that
increases the probability of an insured's lo...
XCEL Chapter 2 - Nature of Insurance Exam Practice
Questions and Answers (100% Pass)
How do insurers predict the increase of individual risks? - Answer✔️✔️-Law
of large numbers
Which of the following is considered to be an event or condition that
increases the probability of an insured's loss? - Answer✔️✔️-Hazard
An example of risk sharing would be - Answer✔️✔️-Doctors pooling their
money to cover malpractice exposures
All of the following are examples of pure risk EXCEPT? - Answer✔️✔️-
Losing money at a casino
What is known as the immediate specific event causing loss and giving rise
to risk? - Answer✔️✔️-Peril
An individual who removes the risk of losing money in the stock market
by never purchasing stocks is said to be engaging in - Answer✔️✔️-Risk
Avoidance
Insurance represents the process of risk - Answer✔️✔️-transference
People with higher loss exposure have the tendency to purchase insurance
more often than those at average risk. This is called - Answer✔️✔️-Adverse
Selection
1
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