Q. What is a "peril" in the context of insurance?

View solution

Q. What is the primary purpose of pooling in insurance?

View solution

Q. What role does the insurer play in the insurance process?

View solution

Q. How does insurance reduce the "burden of risk"?

View solution

Q. What is the primary burden of risk in insurance?

View solution

Q. What is an example of the primary burden of risk?

View solution

Q. What is the secondary burden of risk in insurance?

View solution

Q. What is one of the physical and mental strains caused by the secondary burden of risk?

View solution

Q. Why is transferring the risk to an insurer important in managing the secondary burden of risk?

View solution

Q. Which among the following is a secondary burden of risk?

View solution

Q. What is the principle that underlies insurance contracts?

View solution

Q. How do insurance companies reduce risk in financial markets?

View solution

Q. In the context of risk reduction, what does "Diversification" involve?

View solution

Q. How do funds flow in the principle of mutuality?

View solution

Q. What creates a potential corpus of money in insurance contracts?

View solution

Q. What makes insurance unique among financial products?

View solution

Q. What is "risk avoidance" in the context of risk management?

View solution

Q. What is "self-insurance" in risk management?

View solution

Q. Which risk management approach is described as more practical and relevant than risk avoidance?

View solution

Q. What does "risk reduction and control" involve?

View solution