Alabama Health Insurance | 274 Questions and Answers(A+ Solution guide)

Pure - Insurance is defined as the transfer of ______________ risk to the insurance company in consideration for a premium. Pure Risk - The chance of loss without any chance of gain is called ___________ Speculative Risk - has the possibility for gain or loss and is not insurable. Risk - is defined as the chance of loss. Exposure - A condition that could result in a loss is known as Hazard - is something that increases the chance of loss. Physical Hazard - The presence of a _____________ increases the chance of a loss occurring. Peril - defined as a cause of loss, such as fire. Calculable - To be insurable, losses must be ___________. Law of Large Numbers - allows insurers to predict claims more accurately. Groups of people, not individuals - The law of large numbers applies to ___________. the more accurate the predictions are - The law of large numbers applies to groups of people, not to individuals. The more people in the group ______________.reinsurance , catastrophic loss - Most insurers buy_____________ to protect themselves in the event of a_______________