RMI Insurance Final Exam study set Correct 100%
Declarations page - ANSWER Who/what/when is to be insured; info about the insured property or activity Definitions - ANSWER define unusual terms used in the policy or terms that have special meaning Insuring Agreement - ANSWER summarizes "the promise" of what the insurer will cover, for the premium Conditions - ANSWER place limits or requirements on performance of the insured or insured Exclusions - ANSWER eliminate coverage not normally needed, for coverage that should be provided elsewhere; reduces moral hazards, eliminate coverage for uninsurable perils (CATastrophe perils like flood, earthquakes, etc.) An insurable loss must be - ANSWER definite as to time and place (where, when) and measurable (how much? $) Insurance is not "gambling!" It is a - ANSWER "pure risk" (the possibility of loss or no loss) versus "speculative" like gambling (where the possibility of a gain exists) An ideally insurable risk must be - ANSWER calculable, from the insurer's perspective and losses must occur as a result of chance accidental and unintentional An ideally insurable risk can NOT be - ANSWER Catastrophic. Pooling of risks is based on the "Law of Large Numbers" - ANSWER the greater the number of similar exposures, the more closely the actual results approach the expected results. More credibility in the data.
Document information
- Uploaded on
- February 22, 2024
- Number of pages
- 7
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
