CAIB 1-Chapter 1
RISK - Answer-Chance of financial loss to which an object of insurance is exposed
SPECULATIVE RISK - Answer-the chance of financial loss or gain
PURE RISK - Answer-the chance of financial loss but no chance of financial gain
INSURANCE - Answer-the undertaking by one person to indemnify another person against loss or
liability for loss in respect of a certain risk or peril to which the object of the insurance may be
exposed...or to pay a sum of money or other thing of value upon the happening of a certain event
CONTRACT - Answer-an agreement between two or more persons which creates an obligation to do or
not to do a particular thing
CONSIDERATION - Answer-an exchange or something of value between parties
INSURABLE INTEREST - Answer-onr has an insurable interest in the subject matter of the insurance
when they will suffer financially by a loss
RISK - Answer-Chance of financial loss to which an object of insurance is exposed
SPECULATIVE RISK - Answer-the chance of financial loss or gain
PURE RISK - Answer-the chance of financial loss but no chance of financial gain
INSURANCE - Answer-the undertaking by one person to indemnify another person against loss or
liability for loss in respect of a certain risk or peril to which the object of the insurance may be
exposed...or to pay a sum of money or other thing of value upon the happening of a certain event
CONTRACT - Answer-an agreement between two or more persons which creates an obligation to do or
not to do a particular thing
CONSIDERATION - Answer-an exchange or something of value between parties
INSURABLE INTEREST - Answer-onr has an insurable interest in the subject matter of the insurance
when they will suffer financially by a loss
