Rmin 4000 Test 1 Brown Uga Questions And Answers 100% Verified

Loss must be accidental & unintentional {Ans: loss should be outside of the insured's control}Types of Pure Risk {Ans: personal risks, property risks, liability risks, loss of business income, cyber-security risks}diversifiable risk {Ans: A risk that affects only some individuals, businesses, or small groups. they can be reduced/eliminated through diversification. the risks are not correlated}deductible {Ans: a specified amount of money that the insured must pay before an insurance company will pay a claim}Morale hazard (attitudinal hazard) {Ans: A condition of carelessness or indifference that increases the frequency or severity of loss.}Types of Private Insurance {Ans: Life Health Property Liability Casualty}disadvantages of commercial insurance {Ans: premiums are costly negotiation of contracts takes time and effort risk manager may become lax in exercising loss control}Frequency {Ans: the number of losses (such as fire or theft) that occur within a specified time period. aka the probability of a loss}what is a solution for insurers when the loss might potentially be catastrophic {Ans: reinsurance and diversification}risk {Ans: a calculated possibility of a negative outcome}Liability Risk {Ans: a risk that relates to harm or injury to other people or their property because of