Q. What is the term used to describe losses that result in total loss or bankruptcy?

View solution

Q. What is the primary factor that determines the extent of damage likely to be suffered in a risk event or situation?

View solution

Q. Which of the following would be considered a critical loss?

View solution

Q. What is the defining characteristic of catastrophic losses in insurance?

View solution

Q. Which of the following events would be categorized as a catastrophic loss?

View solution

Q. What is the defining characteristic of marginal/insignificant losses in insurance?

View solution

Q. What is a hazard in the context of insurance?

View solution

Q. What is the primary purpose of assessing hazards in insurance underwriting?

View solution

Q. What is a physical hazard in the context of insurance?

View solution

Q. Which of the following is an example of a moral hazard?

View solution

Q. What is a legal hazard in insurance?

View solution

Q. What mathematical principle makes insurance possible?

View solution

Q. How does the principle of risk pooling work in insurance?

View solution

Q. What principle states that the larger the size of the pool of risks, the actual average of losses would be closer to the estimated or expected average loss?

View solution

Q. Why can insurers be more certain about their predictions regarding losses?

View solution

Q. What is the minimum solvency ratio mandated by IRDAI in India for insurance companies?

View solution

Q. In the context of insurance, why is it important for insurers to have a large number of insured individuals?

View solution

Q. What happens if the pools of risks and premium pools created by insurance companies are not sufficient to meet their liabilities towards paying claims?

View solution

Q. What is the fundamental requirement for a risk to be considered insurable according to the law of large numbers?

View solution

Q. Why is it important for a loss to be definite and measurable for insurance to make sense?

View solution