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

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

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

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

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

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Q. What is a legal hazard in insurance?

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Q. What mathematical principle makes insurance possible?

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

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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?

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

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

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

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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?

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

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

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Q. What type of event must a loss be associated with to be considered insurable?

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Q. What is the economic feasibility criterion for insurability?

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Q. What is the final criterion for insurability related to public policy and morality?

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Q. Which one of the following does not represent an insurable risk?

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Q. Which elements are involved in the process of insurance?

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