Define pure risk - Study guides, Class notes & Summaries

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...

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...

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...

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...

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 ...

Test Bank on the Core Concepts in Pharmacology 5th Edition by Holland, Adams and Brice Table of Contents Chapter 1 ......................................................................................................................................... 3 Chapter 2 ....................................................................................................................................... 12 Chapter 3 ........................................................................................

Probably the best way to define risk is to say, "Risk is the chance of financial loss as a result of loss or damage to the object of insurance or some other happening." - True. Pure Risk: Provides only the potential for financial loss with no chance of gain or profit. Insurance is provided for pure risk only. - True. Risk Retention or Self-insurance may be a practical risk management technique when the chance of financial loss amounts to just a few hundred dollars. - True. There are dif...

AL P&C Test Questions and Answers (Verified Solutions) Latest 2024/2025 Graded A+. Which is the best example of an indirect loss? A. Sequential loss B. Liability loss C. Employee theft D. Loss of use - correct answer D. Loss of use AL P&C Test Questions and Answers (Verified Solutions) Latest 2024/2025 Graded A+ - University of Alabama Which is a two party contract? A. Property B. Casualty C. Liability D. Auto - correct answer A. Property Insurance contracts offset A. speculative r...