Define pure risk - Study guides, Class notes & Summaries

Fundamentals of Insurance BC questions and answers graded A+ What is the major function of insurance? - ANSWERS to allow the spread of risk What are the five important functions of insurance? - ANSWERS 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 the amount required to indemnify the insured 4) insurance covers losses the object may be exposed to 5) the indemnit...

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...

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...

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...

ISO (Insurance Services Office) Correct Answer ISO creates standardized property and casualty insurance policies that are approved by states and used as a standard policy for insurers. -they can be modified to comply with state regulations -may be modified to a degree for insurance companies to create their own policy form Define insurance Correct Answer Insurance transfers the risk of loss from an individual or business entity to an insurance company, which in turn spreads the costs of ...

Define "Risk" correct answersThe chance of a financial loss to which the object of insurance may be exposed to List 3 Categories of Risk correct answers1) Personal 2) Property 3) Liability List 4 Types of Risk Management Techniques correct answers1) Risk Avoidance 2) Risk Retention 3) Risk Control 4) Risk Transfer Define "Risk Avoidance" correct answersTo avoid doing something in order to eliminate the chance of risk Define "Risk Retention" correct answersTo self-insure or to p...

Define: Insurance - Answer A contract that indemnifies another against loss, damage, or liability arising from an unknown event. Define: Indemnify - Answer To make a person whole by restoring that person to the same financial position that existed before the loss. Define: 1. Policy-owner, 2. Premium, and 3. The Insurer - Answer 1. The insured individual 2. Set amount of money paid to insurer 3. The company providing the insurance The name for the agreement between the insurer an...

CRM Principles of Risk Management Exam Questions And Answers Explain the impacts of an effective Risk Management program on an organization (6) - Answer-1. protects organization's reputation/brand 2. Increases profitability 3. Raises awareness of risk management 4. supports managerial objective 5. Improves morale and productivity 6. Improves quality, process and technology Define Traditional Risk Management (TRM). - Answer-a functional, siloed, view of risk affecting one or more...

Major roles of insurance - Risk management to deal with loss exposures; transfer system of financial loss from insured to insurer; business sufficient to pay claims and provide profit; contract between insured and insurer What are risk management techniques? - Loss prevention; loss reduction; risk transfer; loss avoidance Define Insurance Policy - A contract that states the rights and duties of both the insured and the insurer regarding the transfer and costs of losses. Define Exposure Un...

CAIA Level 1 Exam Study Guide Define investment - Investment is deferred consumption List the four major types of real assets other than land and other types of real estate. - Natural resources, commodities, infrastructure, and intellectual property. List the three major types of alternative investments other than real assets in the CAIA curriculum. - Hedge funds, Private Equity, and Structured Products Name the five structures that differentiate traditional and alternative investm...