Which of the following is an insurable risk Quizlet
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Business Math17th EditionMary Hansen 3,734 solutions Intermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions Adhesion • An insurance policy is basically "take it or leave it." There are no negotiations over terms and conditions. • As a result, any ambiguities in an insurance contract are found in favor of the insured. Aleatory • The money exchanged may be unequal. In other words, there's a small premium, but the insured may receive a large benefit. Unilateral • Only one promise is made by the insurer which is to pay in the event of a loss. • The insured is not obligated to pay the premiums. If the premiums are not paid, then there's no promise by the insurer. Conditional • The insured must abide by the terms and conditions of the insurance contract. If the terms and conditions are not followed, the insurer may not pay a claim Recommended textbook solutions
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Mathematics with Business Applications6th EditionMcGraw-Hill Education 3,760 solutions Business Math17th EditionMary Hansen 3,734 solutions Fundamentals of Financial Management, Concise Edition10th EditionEugene F. Brigham, Joel Houston 777 solutions Which of the following risk is insurable risk?Insurable risks are risks that insurance companies will cover. These include a wide range of losses, including those from fire, theft, or lawsuits. When you buy commercial insurance, you pay premiums to your insurance company. In return, the company agrees to pay you in the event you suffer a covered loss.
Which of the following risks are insurable quizlet?Pure risk is the only type of risk that is insurable because there is only the chance of loss. The Law of Large Numbers allows the probability of loss to become more predictable. You just studied 7 terms!
Which of the following is an element of insurable risk quizlet?For insurable risks, the following must be true: 1.) loss must be definite and measurable; 2.) the loss must be predictable; 3.) loss exposures must be chosen randomly; and 4.)
Which of the following is an element of an insurable risk?Most insurance providers only cover pure risks, or those risks that embody most or all of the main elements of insurable risk. These elements are "due to chance," definiteness and measurability, statistical predictability, lack of catastrophic exposure, random selection, and large loss exposure.
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