XCEL Chapter 2 - Nature Of Insurance Already Grade
XCEL Chapter 2 - Nature of Insurance Already Grade
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XCEL Chapter 2 - Nature of Insurance Already Graded A+
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XCEL Chapter 2 - Nature of Insurance Already Grade
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XCEL Chapter 2 - Nature Of Insurance Already Grade
XCEL Chapter 2 - Nature of Insurance Already Graded A+
1. How do insurers predict the increase of individual risks?
️ Law of large numbers
2. Which of the following is considered to be an event or condition that increases the probability of an
insured's loss?
️ Hazard
3. An exam...
XCEL Chapter 2 - Nature of Insurance Already Graded A+
1. How do insurers predict the increase of individual risks?
✔️ Law of large numbers
2. Which of the following is considered to be an event or condition that increases the probability of an
insured's loss?
✔️ Hazard
3. An example of risk sharing would be:
✔️ Doctors pooling their money to cover malpractice exposures
4. All of the following are examples of pure risk EXCEPT?
✔️ Losing money at a casino
5. What is known as the immediate specific event causing loss and giving rise to risk?
✔️ Peril
6. An individual who removes the risk of losing money in the stock market by never purchasing stocks is
said to be engaging in:
✔️ Risk Avoidance
7. Insurance represents the process of risk:
✔️ Transference
8. People with higher loss exposure have the tendency to purchase insurance more often than those at
average risk. This is called:
✔️ Adverse Selection
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