Chapter 2: Nature of insurance, risk, perils, and hazards Flashcards
1
Q
which of the following is considered to be an event or condition that increases the probability of an insured’s loss?
A
hazard
2
Q
how do insurers predict the increase of individuals risks?
A
law of large numbers
3
Q
an individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in
A
risk avoidance
4
Q
the cause of a loss is referred to as an
A
peril
5
Q
A
