Rmin 4000 ragin - Study guides, Class notes & Summaries

risk - ANSWER-a calculated possibility of a negative outcome (loss and probability) possibility - ANSWER-a probabilistic outcome that is known or estimated loss - ANSWER-must be quantifiable, typically in dollar amounts pure risk - ANSWER-risk with only two future potential states of the world (ex. flood, time of death, cancer) speculative risk - ANSWER-risk with three potential states of the world: loss, break even, or gain (ex. investments, gambling) moral hazard - ANSWER-idea t...

RMIN 4000 Test 2 UGA Marc Ragin with Complete SolutionsRMIN 4000 Test 2 UGA Marc Ragin with Complete SolutionsRMIN 4000 Test 2 UGA Marc Ragin with Complete SolutionsRMIN 4000 Test 2 UGA Marc Ragin with Complete Solutions Gross Premium - ANSWER-Total premium charged per unit of coverage Risk Charge - ANSWER-Estimation of risk of the insurer. 3* SD/ per person Admin Costs - ANSWER-Money spent in daily operations of company. Ex. Salaries, overhead, marketing

RMIN 4000 Test 2 UGA Marc Ragin Exam Q’s and A’s

RMIN 4000 Test 2 UGA Marc Ragin

Gross Premium - ANSWER-Total premium charged per unit of coverage Risk Charge - ANSWER-Estimation of risk of the insurer. 3* SD/ per person Admin Costs - ANSWER-Money spent in daily operations of company. Ex. Salaries, overhead, marketing Expected Loss - ANSWER-Expected frequency * expected severity Fortuitous - ANSWER-Random, accidental, no control over E(F)/E(S) Underwriting - ANSWER-process of classifying a risk Risk based pricing - ANSWER-Higher the risk you are, the more t...

Gross Premium - ANSWER-Total premium charged per unit of coverage Risk Charge - ANSWER-Estimation of risk of the insurer. 3* SD/ per person Admin Costs - ANSWER-Money spent in daily operations of company. Ex. Salaries, overhead, marketing Expected Loss - ANSWER-Expected frequency * expected severity Fortuitous - ANSWER-Random, accidental, no control over E(F)/E(S) Underwriting - ANSWER-process of classifying a risk Risk based pricing - ANSWER-Higher the risk you are, the more t...