CAIB 1-Chapter 1 questions with correct answers

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