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5 Cards in this Set
- Front
- Back
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Insurance |
•Transfers the risk of loss from an individual to an insurer •Based on the principal of indemnity •Based on the spreading of risk (risk poor) and the law of large numbers |
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Hazard |
Hazard give rise to a peril •Physical •Moral (Lies) •Morale (Carelessness) |
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Risk |
Uncertainty regarding to financial loss •Pure risk(only insurable) only chance for loss •Speculative risk (gambling) |
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Methods for handling risk |
•Avoidance •Retention •Sharing •Reduction •Transfer |
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Elements of insurers risk |
•Due to chance •Definite and measurable •Predictable •Not Catastrophic •Large exposure •Randomly selected exposure |
