2 types of risk 1 pure - Study guides, Class notes & Summaries

Fundamentals of Insurance (BC) - Self-Examination Chapter Questions and correct answers What is the major function of insurance? - ANSWERS To allow the spread of risk. Define "Spread of Risk" - ANSWERS "The losses of the few are shared among the many" What are the 4 other functions of insurance? - ANSWERS 1. Basis of Credit System 2. Eliminates worry - Encourages Entrepreneurship 3. Loss Prevention and Loss Reduction 4. Source of Employment and Investment Capital What are the 3...

Risk - Answer-Chance of loss Insurance - Answer-A contract in which one party agrees to indemnify the insured party against loss, damage or liability arising from an unknown event. Pure risk - Answer-Chance of loss only Speculative - Answer-Chance of loss or gain 2 types of risk - Answer-Pure & speculative Only risk insurance covers? - Answer-Pure Exposure - Answer-Unit of measurement. Measures the amount of risk. Hazard - Answer-Condition that INCREASES the chance of loss. Types of haz...

RMIN 4000 uga test 1 latest update graded A+ types of risk -pure risk -speculative risk -diversifiable risk -nondiversifiable risk -enterprise risk -systemic risk risk uncertainty concerning the occurrence of a loss uncertainty probabilities cannot be estimated loss exposure any situation or circumstance in which a loss is possible, regardless of whether a loss actually occurs example: earthquake or flood causing damage to a manufacturing plant objective risk (degree o...

Fundamentals of Insurance (BC) - Self-Examination Chapter Questions and correct answers What is the major function of insurance? - ANSWERS To allow the spread of risk. Define "Spread of Risk" - ANSWERS "The losses of the few are shared among the many" What are the 4 other functions of insurance? - ANSWERS 1. Basis of Credit System 2. Eliminates worry - Encourages Entrepreneurship 3. Loss Prevention and Loss Reduction 4. Source of Employment and Investment Capital What are the 3...

Life Insurance Exam: Unit 1 General InsuranceInsurance - correct answer -legal contract that transfers risk of financial loss from an individual or business to an insurer -insurer agrees to cover for certain losses risk - correct answer -uncertainty about whether a loss will occur -if loss certain to occur, it doesn't involve risk -insurance only covers losses that involve risk (death timing= uncertain) 2 types of risk - correct answer speculative & pure speculative risk - correct a...

Fundamentals of Insurance (BC) - Self-Examination Chapter Questions and correct answers What is the major function of insurance? - ANSWERS To allow the spread of risk. Define "Spread of Risk" - ANSWERS "The losses of the few are shared among the many" What are the 4 other functions of insurance? - ANSWERS 1. Basis of Credit System 2. Eliminates worry - Encourages Entrepreneurship 3. Loss Prevention and Loss Reduction 4. Source of Employment and Investment Capital What are the 3...

Texas Property and Casualty Insurance Exam Questions with 100% Correct Answers Insurance The transfer of the possibility of a loss (risk) from an individual or business to an insurance company, which in turn spreads the costs of unexpected losses to many individuals Law of Large Numbers The larger the number of people with a similar exposure to loss, the more predictable actual losses will be Law of Large Numbers Example When issuing a policy on a 35 year old male, the insurance co...

C11 - Principles & Practice Questions with Verified Answers What are the 3 general types of risk? People are risk! Personal, Property, Liability What does "insurance" mean? When something gets crumpled, Indemnify! Indemnification, Risk, Money, Perils, Loss, Exposure How does insurance provide security? It WIIPs risks ***********! Worries, Inconvenience, Indemnification, Premiums What do risk managers do? They eat kIMChi! Identify, Measure, Control How does the insurance ind...

CPCE Study Guide 1945 Questions with Answers 2023 The Sensorimotor period is part of whose developmental stage theory? - CORRECT ANSWER Piaget Presenting stimuli in different sequences to reduce "order of presentation" influences in an experiment is called: - CORRECT ANSWER Counterbalancing The Eskimo word "piblokto" refers to "arctic hysteria," characterized by uncontrolled screaming and crying that is often accopanied by running through the snow naked. This is an example of wh...

Law of Large Numbers CORRECT ANSWER The larger the number of people with a similar exposure to loss, the more predictable actual losses will be. Insurance CORRECT ANSWER Transfers the risk of loss from an individual or business entity to an insurance company The three elements of insurable risk are CORRECT ANSWER 1) Financial 2) Blood (relative) 3) Business Risk CORRECT ANSWER The uncertainty or chance of a loss occurring Types of risks are CORRECT ANSWER 1) Pure risk 2) Speculative ...