Insurance companies assist individuals in managing personal risk through risk pooling. Risk pooling is based on fact that the probability of any one type of loss occurring for a given individual is small. Therefore insurers can insure:
A) A large number of people against a given peril, based on the knowledge that only a small percentage of those insured will ever file a claim for the particular peril
B) Only few people against a given peril, based on the knowledge that only a small percentage of those insured will ever file a claim for the particular peril
C) A large number of people against a given peril, based on the knowledge that a large percentage of those insured will ever file a claim for the particular peril
D) None of these
Correct Answer:
Verified
Q130: General liability insurance covers the major liability
Q131: The risks associated with operating objectives include
Q132: Asset/liability management is a planning tool designed
Q133: Sarbanes Oxley and bases are:
A) Financial service
Q134: The EU saving Directive is aimed at
Q136: The term umbrella market segmentation is referred
Q137: Whole life policies accrue a cash value
Q138: It provides additional living expenses when the
Q139: _insurance provides a specified benefit amount in
Q140: Main areas within financial services are:
A) Banking
B)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents