Uncertainty avoidance Study guides, Class notes & Summaries

Insurance Answer - A method of spreading the result of financial loss among a large number people. Life Insurance Answer - A contract under which one party (the insurer) in consideration of the premium payment, agrees to pay an amount stipulated in the contract to a designated person (the beneficiary) upon the occurrence of a contingency defined in the contract (usually that of death). Indemnity Answer - The concept that insurance should restore the insured, in whole or in part, to the con...

Loss Sharing The spreading or pooling of risks over a large group of individuals Risk pooling Same as loss sharing Law of large numbers Science of probability and experience of mortality (death) & morbidity (sickness). The larger and more homogenous the group the more certain the predictions Risk Is defined as uncertainty regarding loss Speculative risk The chance of both loss and gain Pure risk Involve only the chance of loss. Only Pure risk is insurable Peril Is an immediate specific e...

BUSI 3250 Exam 1 Questions and Answers What are the 3 P's of sustainability? - Correct Answer ️️ -people, planet, profit Meeting the needs of the future without compromising the ability of future generation's to meet their needs - Correct Answer ️️ -Sustainable Development C.K. Prahalad popularized the term - Correct Answer ️️ -"Bottom of the Pyramid" What does "Bottom of the Pyramid" refer to? - Correct Answer ️️ -refers to the approximately 3 billion people who surv...

Florida Insurance 2-14 Exam Terms 100% Correct Insurance Financial protection against loss or harm - An arrangement by which company gives customers financial protection against loss or harm such as theft or illness in return for premium payments. Life Insurance Is based on actuarial or mathematical principles and guarantees a specified sum of money upon the death of the person who is insured. Annuities Provide a stream of income by making a series of payments to the annuitant for the annuitan...

Which of the following terms best describes the chance of uncertainty or loss? - Risk In order to avert the financial loss that sometimes accompanies an auto collision, Robert chooses not to own or drive a car. Which of the following means of risk management is Robert practicing? - Risk Avoidance Which of the following is not a method of managing risk? - Measuring and quantifying the risk

Insurance correct answer: protects from loss; transfer of risk Risk correct answer: uncertainty or chance of loss occurring Pure risk correct answer: can only result in loss and no gain; what insurance companies are willing to accept Speculative risk correct answer: opportunity for either loss or gain; like gambling Exposure correct answer: units of measure used to determine rates charged for insurance coverage (age, occupation, medical history and sex) Homogeneous correct an...

A condition or situation that presents a possibility of loss is a (an): correct answers exposure The purpose of insurance is to: correct answers transfer risk Which hazard can be described as a careless attitude or general indifference on the part of the insured toward the occurrence of loss? correct answers morale Which risk is insurable? correct answers pure With regard to insurance, risk can be defined as: correct answers uncertainty regarding loss Treating risk by purchasing i...

Massachusetts Life and Health Insurance Exam Already Passed Insurance Transfer of Risk Risk Uncertainty/ Possibility of Loss Exposure Risks for which the insurance company would be liable Peril Cause of Loss Hazard Something that causes an increase in the chance of loss Physical Hazard Hazard that can be seen Moral Hazard A belief that intentionally causing a loss is acceptable Morale Hazard Carelessness STARR Method of handling risk S- Method of handling risks Sha...

BCOR 1030 Final Exam Questions and Answers with complete solution How does culture influence communication? it provides a framework that shapes the messages you send and receive everyday High context cultures gather subtle information from facial expressions, vocal cues, and even silence in interpreting messages Low context cultures rely on language and meanings of words Individualistic cultures value their own interests more than the group Collectivist cultures value the group inte...

Personal Financial Planning Pyramid - Answer-bottom to top: 1.Risk mgmt protection (life/health insurance), 2.Wealth accumulation (savings & accumulation, growth & diversification, speculation investments) 3. Wealth distribution Traditional Risk Management Process (TRM) of an Organization - Answer-1. Identify Risk 2. Evaluate Risk 3. Select a Risk Management Technique to treat each risk 4. Implement and Review Risk Management (RM) Techniques to treat risk - Answer-Risk avoidance Loss Con...