The basic purpose of insurance is to:
A) protect your health.
B) protect yourself from economic losses.
C) supplement your income.
D) shield you from bad decisions.
E) none of these
Insurance is a tool that can lessen _____ risk.
.Which of the following risk management techniques is the purchase of insurance a common form of?
A) Risk retention
B) Risk transfer
C) Risk assumption
D) Risk avoidance
E) Loss control
Insurance underwriting is best described as:
A) the process used by insurers to decide who can be insured and to determine applicable rates that will be charged for premiums.
B) a set of activities used to identify the risk and rewards of investing the insured's funds on marketable securities.
C) production-related activities performed primarily by agents on the field.
D) process of developing pricing structures for insurance,often performed by an actuary.
E) a function most often performed by acturials.