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Insurance Fundamentals Exam Package Deal 2023
Insurance Fundamentals Exam Package Deal 2023
[Show more]Insurance Fundamentals Exam Package Deal 2023
[Show more]The major function of insurance is: 
a. To reduce the cost of the losses 
b. To share the losses of the few among the many 
c. The safeguard the interest of mortgages 
d. To serve as a basis of existing credit system - b. To share the losses of the few among the many 
A peril if best defined as: 
a....
Preview 3 out of 29 pages
Add to cartThe major function of insurance is: 
a. To reduce the cost of the losses 
b. To share the losses of the few among the many 
c. The safeguard the interest of mortgages 
d. To serve as a basis of existing credit system - b. To share the losses of the few among the many 
A peril if best defined as: 
a....
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...
Preview 4 out of 36 pages
Add to cartInsurance 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...
Chapter 1 - Intro 
List the 5 functions of insurance: - 1) Spread of risk 
2) Basis of credit system 
3) Eliminate worry and develop entrepreneurship 
4) Loss reduction and prevention (road safety, alarms, etc.) 
5) Employment opportunity 
Definition of insurance (3 parts) - 1) insurance provides a ...
Preview 4 out of 47 pages
Add to cartChapter 1 - Intro 
List the 5 functions of insurance: - 1) Spread of risk 
2) Basis of credit system 
3) Eliminate worry and develop entrepreneurship 
4) Loss reduction and prevention (road safety, alarms, etc.) 
5) Employment opportunity 
Definition of insurance (3 parts) - 1) insurance provides a ...
Spread of Risk - - "The losses of few are shared among the many" 
- A large pot into which all insureds place their premiums 
- This pot provides for payment for the losses of those who have claims 
Basis of Credit System - Consumer access to insurance frees up credit 
Eliminates Worry - Encourage...
Preview 2 out of 8 pages
Add to cartSpread of Risk - - "The losses of few are shared among the many" 
- A large pot into which all insureds place their premiums 
- This pot provides for payment for the losses of those who have claims 
Basis of Credit System - Consumer access to insurance frees up credit 
Eliminates Worry - Encourage...
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 ...
Preview 2 out of 7 pages
Add to cartWhat 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 ...
Chapter 1 - Introduction to General Insurance 
The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. - 
the major function of insurance is to share the losses of the few among the many 
What are the five functions of insurance? - 1. spread of risk (...
Preview 4 out of 34 pages
Add to cartChapter 1 - Introduction to General Insurance 
The major function of insurance is to achieve a spread of risk. Explain what is meant by spread of risk. - 
the major function of insurance is to share the losses of the few among the many 
What are the five functions of insurance? - 1. spread of risk (...
Agent/Producer - a legal representative of an insurance company; the classification of producer 
usually includes agents and brokers; agents are the agents of the insurer 
Applicant or proposed insurer - a person applying for insurance 
Consent - permission to do something 
Insurable Interests - the...
Preview 1 out of 4 pages
Add to cartAgent/Producer - a legal representative of an insurance company; the classification of producer 
usually includes agents and brokers; agents are the agents of the insurer 
Applicant or proposed insurer - a person applying for insurance 
Consent - permission to do something 
Insurable Interests - the...
Main purpose of Insurance - Allow the spread of risk 
Definition of Insurance - -Payment's made only when a certain peril has damaged the insured object 
-Payment's limited to actual amount of loss, no more and no less 
-There's no payment for losses that are deliberately caused by an insured. 
F...
Preview 4 out of 32 pages
Add to cartMain purpose of Insurance - Allow the spread of risk 
Definition of Insurance - -Payment's made only when a certain peril has damaged the insured object 
-Payment's limited to actual amount of loss, no more and no less 
-There's no payment for losses that are deliberately caused by an insured. 
F...
Risk - Uncertainty concerning the occurrence of a loss 
Loss Exposure - Any situation or circumstance in which a loss is possible, regardless of whether a loss 
occurs 
Objective vs Subjective Risk - Objective risk is defined as the relative variation of actual loss from 
expected loss 
Subjective r...
Preview 2 out of 12 pages
Add to cartRisk - Uncertainty concerning the occurrence of a loss 
Loss Exposure - Any situation or circumstance in which a loss is possible, regardless of whether a loss 
occurs 
Objective vs Subjective Risk - Objective risk is defined as the relative variation of actual loss from 
expected loss 
Subjective r...
nsurance - A Contractual arrangement that protects against lost 
Insurer - The party who agrees to indemnify (Geico) 
Indemnify - To make good the loss of a suffering party 
Insured - The party covered or protected by insurance 
Beneficiary - a person who derives advantage from something, especially...
Preview 1 out of 4 pages
Add to cartnsurance - A Contractual arrangement that protects against lost 
Insurer - The party who agrees to indemnify (Geico) 
Indemnify - To make good the loss of a suffering party 
Insured - The party covered or protected by insurance 
Beneficiary - a person who derives advantage from something, especially...
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