Exam (elaborations)
C16 Business of Insurance Chapter 1 Exam/6 Q’s and A’s
- Course
- Institution
C16 Business of Insurance Chapter 1 Exam/6 Q’s and A’s
[Show more]
Seller
Follow
Victorious23
Reviews received
Content preview
C16 Business of InsuranceChapter 1 Exam/6 Q’s and A’s
Principles of Insurance - -#1 Principle: premiums of the many used to pay
losses of few
2 Principle: premium shall be commensurate with the risk
-Short-tail lines - -Short-tail lines injury becomes known quickly
e.g., most property losses
-Long-tail lines - -Long-tail lines injury not settled for maybe 10 - 25 years
e.g., products' liability lines
-Impact of long tail lines - -Length of such gaps are considered when pricing
risks
to ensure proper cash flow and cash reserves in many years to come
-Insurance provides the following in the economy - -security
confidence
savings
encouragement of investment
reduction in price of consumer goods
-Insurance encourages the following activities in the Canadian Economy - -
Banks issue mortgages on insured buildings
Developers advance funds to contractors on projects guaranteed by surety
bonds
Retailers accept commercial risk of operating when purchase liability
insurance
Professionals provide services when able to insure against malpractice
liability
Manufacturers accept risks of shipping when insured
Members of society sanction use of auto when insured
-
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Victorious23. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78600 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now