CALIFORNIA LIFE AND HEALTH INSURANCE + ETHICS QUESTIONS AND ANSWERS ELABORATIONS!!

CALIFORNIA LIFE AND HEALTH INSURANCE + ETHICS
QUESTIONS AND ANSWERS ELABORATIONS!!
What is insurance?


Answers Insurance transfers the risk of loss from an individual or business entity
to an insurance company, which in turn spreads the costs of unexpected losses to
many individuals.
What is risk?


Answers Uncertainty of loss occurring.
When is a lost not considered to hold risk?


Answers If the loss is certain.
What is the uncertainty risk in life insurance?


Answers The uncertainty around the timing of someone's death.
What is speculative risk?


Answers A risk situation that includes a chance of loss and a potential for gain.
Speculative risks are not insurable.
What is pure risk?


Answers A risk that presents the chance of loss but no opportunity for gain.
What is the definition of a loss?


Answers The reduction of value in an asset