Fundamentals to Insurance| 404 Questions with 100 % correct Answers | Verified

List the 5 functions of insurance: - 1) Spread of risk 2) Basis of credit system 3) Eliminate worry and develop entrepreneurship 4) Loss reduction and prevention (road safety, alarms, etc.) 5) Employment opportunity Definition of insurance (3 parts) - 1) insurance provides a means of shifting ones financial responsibility from a loss to another party ii) payment will be made only in the event of the happening of a certain risk or peril iii) the amount of the payment is restricted to the amount required to indemnify the insured 5 points of insurance - 1) Shift financial responsibility for a loss 2) payment made only in the event of a loss 3) Payment restricted to amount to indemnify (no more, no less) 4) Cover loss to which object of insurance may be exposed (accidental and future) 5) Indemnify in form of money or other thing of value (rebuild/repair) 3 types of property and casualty insurance - Auto, property (home and business), and liability (injury or damage to a third party) What are the 2 major types of insurers and provide an example for each - Private (stock profit or mutual policy holder), or government (ICBC, employment insurance)