What are the elements of insurable risk?

• There must be a large number of exposure units.
• The loss must be accidental and unintentional.
• The loss must be determinable and measurable.
• The loss should not be catastrophic.
• The chance of loss must be calculable.
• The premium must be economically feasible.

What are the elements of insurance?

Which of the following is an element of insurable risks quizlet?

For insurable risks, the following must be true: 1.) loss must be definite and measurable; 2.) the loss must be predictable; 3.) loss exposures must be chosen randomly; and 4.)

Which of the following is not an essential element of an insurable risk?

Which is not an essential element of an insurable risk? Answer B is correct. Intentional losses are excluded. The loss must be accidental.

What are the seven common characteristics of risk?

What are the 4 types of risk?

What are the three main types of insurable risks quizlet?

give an example of each of three main types of risk. risk- a chance a motor vehicle might hit you by crossing the street. peril- a fire, windstorms, explosions, robbery and accidents. hazard-defective electrical wiring in a house.

What are the elements of risk management?

What are the 4 characteristics of risk?

What are the 5 principles of risk management?

The five basic risk management principles of risk identification, risk analysis, risk control, risk financing and claims management can be applied to most any situation or problem.

Which of the following is not insurable risk?

A non-insurable risk is a risk that the insurance company deems too hazardous or financially impractical to take on. These are typically risks that are commercially uninsurable, illegal for the insurance company to insure, or hold the potential for catastrophic loss. Common examples include: Residential overland water.

What is insurable risk and non-insurable risk?

While certain risks are insurable, certain risks are non-insurable. Simply stated, insurable risks are risks in which the insurance provider can calculate potential future losses or claims. Historical statistics are used as the foundation of calculating premiums for insurable risks.

Which of the following types of risk is insurable quizlet?

Pure risk is the only type of risk that is insurable because there is only the chance of loss. The Law of Large Numbers allows the probability of loss to become more predictable.

Which of the following are the general sources of uninsurable risks?

which of the following are the general sources of uninsurable risk ? -changes in teh general economic environment. other things equal, longer-term usually: - impose a financial sacrifice to long-term lenders because of foregone alternative uses of their money for greater periods of time.

Which is the correct statement regarding insurable risk?

An insurable risk must involve a loss that is definite as to cause, time, and place.

What are the 4 elements of an insurance contract?

In general, an insurance contract must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration.

What are the 4 types of insurance?

What are the 3 main types of insurance?

Then we examine in greater detail the three most important types of insurance: property, liability, and life.

What are the 4 characteristics in the risk management process?

What are the categories of risk?

What are the two main characteristics of risk?

Broadly speaking, there are two main categories of risk: systematic and unsystematic.