Insurance is:
A) a promise of compensation if a specified bad thing happens.
B) a promise that a specified bad thing will be avoided.
C) the removal of the risk of bad events.
D) compensation that is given in return for risk.
Correct Answer:
Verified
Q80: A systematic risk is a risk that:
A)affects
Q81: Which of the following statements is true
Q82: Which of the following is NOT an
Q83: The price of insurance is:
A)based on diversification.
B)equal
Q84: A premium is:
A)what is gained beyond expected
Q86: A promise of compensation if a specified
Q87: An insurance policy is actuarially fair if:
A)the
Q88: An insurance policy that, on average, is
Q89: Actuarially fair insurance is equivalent to:
A)diversification.
B)raising the
Q90: Most insurance:
A)is designed to earn a profit
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