Which of the following is meant by the pooling of losses?
Pooling of Losses\n\n Pooling is the spreading of losses incurred by the few over the entire group, so that in the process, average loss is substituted for actual loss.
Which of the following are the characteristics of insurable risks?
Answer: D. The actual cause of a loss is called a peril and is identified or referred to in the insurance policy. Perils include such events as fire, wind, hail, and collision with another car.
Which of the following can be defined as a cause of a loss?
There are generally 3 types of risk that can be covered by insurance: personal risk, property risk, and liability risk.
What is pooling of losses?
Pooling of Losses: Pooling or the sharing of losses is the heart of insurance. Pooling is the spreading of losses Pooling of Losses.docx - 1. A. Pooling of Losses: Pooling... This preview shows page 1 out of 1 page. 1. A. Pooling of Losses:Pooling or the sharing of losses is the heart of insurance.
How can insurers minimize or avoid catastrophic losses?
The loss must be definite as to place. II. The loss must be definite as to amount. 11) Methods by which insurers may minimize or avoid catastrophic losses include which of the following? I. The use of reinsurance II. Concentrating coverage written in one geographic region
What are the requirements of accidental loss insurance?
(a) The loss must be accidental. (b) The loss should be catastrophic. (c) The premium must be economically feasible. (d) There must be a large number of exposure units. (b) The loss should be catastrophic.