Florida 2-15 Insurance | Questions and Correct Solutions | Latest Update 2024/2025 | Graded A+

Florida 2-15 Insurance | Questions and Correct Solutions | Latest Update 2024/2025 | Graded A+ In the insurance business, risk can best be defined as: A. sharing the possibility of a loss B. uncertainty regarding the future C. uncertainty regarding financial loss D. uncertainty regarding when death will occur - Answer -C. The concept of insurance developed from the need to minimize the adverse effects of risk associated with the probability of financial loss. Which of the following risks is insurable? A. pure risks B. gambling C. speculative risks D. investing - Answer -A. Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they donot mix both profits and losses. Insurance is concerned with the economic problems created by pure risks. Buying insurance is one of the most effective ways of A. avoiding risk B. transferring risk C. reducing risk D. retaining risk - Answer -B. Buying insurance is one of the most effective ways of transferring risk. Through the insurance contract, the burden of carrying the risk and indemni