FX Exam Study Guide With Complete Solution Latest Update

FX Exam study guide - Insurance Terms To make whole again - Purpose of insurance Basic principle of insurance which the financial loss is assigned to another party. - Transfer A principle stating that the larger number of similar exposure units considered, the more closely the losses reported will equal the underlying probability of loss. - Law of large numbers What you pay a month. - Premium The chance of a loss occurring that involves the opportunity for loss or gain. NOT INSURABLE - Speculative Risk Chance of a loss in a situation that can only result in a loss or no change. - Pure Risk Any interest an insured may have in property that is the subject of insurance, so that damage of that property would cause the insured financial loss.