Rmi 2101 exam - Study guides, Class notes & Summaries

RMI 2101 Exam 3 Latest Update Graded A+ Insurance Supply Insurers are willing to sell insurance at a particular price. Pi Price of insurance Pi = P* + Risk Charge + Loading Pmax the most an individual will pay for insurance for a particular risk. Risks are insurarable if.. Pi < Pmax Why might Pi > Pmax? - Pi is too high - risk charge is too high, loading costs are too high. - Pmax is too low - individuals underestimate the severity or frequency of the loss. Moral haza...

RMI 2101 Exam 1 Latest Version Graded A+ Risk Uncertainty about future losses No uncertainty= no risk Probablilty of a loss -Likelihood of a loss - Range from 0-1 or 0% to 100% Common Elements of pure risk and speculative risk _Involve uncertainty Differences in Pure and Speculative risk -Difference is in the outcomes or "possible future state of world" Pure Risk Possible Outcomes Loss No loss Speculative Risk Outcomes Loss, No loss, gain Pure Risk Examples Natu...

RMI 2101 Exam 1 (Temple University) Already Graded A Risk is the uncertainty about future losses or outcomes Probability likelihood that an outcome or event will occur Pure Risk is a chance of loss or no loss but no chance for gain; always undesirable Good Example of Pure Risk? You own a building, it will either burn or not burn, either way your financial responsibility remains constant. Pay the for the up keep of the building or suffer financial loss if building burns. Specu...

RMI 2101 Exam 2 Questions and Answers Already Passed What are risk transfers of the financing type? (6) Involves the transfer of risk through insurance or non-insurance techniques to shift the financial responsibility of a loss to another party. The activity or asset is still exposed to loss. Financial responsibility can be transfered back. Explain the insurance and non-insurance techniques of risk transfers and provide examples. (6) Insurance: transfer financial responsibility to ins...

RMI 2101 Exam 1 with Complete Solutions-(McCloskey)

Insurance Supply - Insurers are willing to sell insurance at a particular price. Pi - Price of insurance Pi = P* + Risk Charge + Loading Pmax - the most an individual will pay for insurance for a particular risk. Risks are insurarable if.. - Pi < Pmax Why might Pi > Pmax? - - Pi is too high - risk charge is too high, loading costs are too high. - Pmax is too low - individuals underestimate the severity or frequency of the loss. Moral hazard created by disaster relief (floods) - wher...

RMI 2101 Exam 3 Questions With Verified And Updated Answers Insurance Supply - answerInsurers are willing to sell insurance at a particular price. Pi - answerPrice of insurance Pi = P* + Risk Charge + Loading Pmax - answerthe most an individual will pay for insurance for a particular risk. Risks are insurarable if.. - answerPi < Pmax Why might Pi > Pmax? - answer- Pi is too high - risk charge is too high, loading costs are too high. - Pmax is too low - individuals underestimate th...

RMI 2101 Exam 1 Questions With Verified And Updated Answers Risk - answeris the uncertainty about future losses or outcomes Probability - answerlikelihood that an outcome or event will occur Pure Risk - answeris a chance of loss or no loss but no chance for gain; always undesirable Good Example of Pure Risk? - answerYou own a building, it will either burn or not burn, either way your financial responsibility remains constant. Pay the for the up keep of the building or suffer financial los...

RMI 2101 Exam 1 Questions With Verified And Updated Answers Risk - answerUncertainty about future losses No uncertainty= no risk Probablilty of a loss - answer-Likelihood of a loss - Range from 0-1 or 0% to 100% Common Elements of pure risk and speculative risk - answer_Involve uncertainty Differences in Pure and Speculative risk - answer-Difference is in the outcomes or "possible future state of world" Pure Risk Possible Outcomes - answerLoss No loss Speculative Risk Outcomes - ans...

RMI 2101 Exam 3 Questions With Verified And Updated Answers Insurance Supply - answerInsurers are willing to sell insurance at a particular price. Pi - answerPrice of insurance Pi = P* + Risk Charge + Loading Pmax - answerthe most an individual will pay for insurance for a particular risk. Risks are insurarable if.. - answerPi < Pmax Why might Pi > Pmax? - answer- Pi is too high - risk charge is too high, loading costs are too high. - Pmax is too low - individuals underestimate th...