Podcast
Questions and Answers
Insurance is a means of reducing all risks to an organization's capital and earnings.
Insurance is a means of reducing all risks to an organization's capital and earnings.
False (B)
The main function of insurance is to eliminate the uncertainty of unexpected financial loss.
The main function of insurance is to eliminate the uncertainty of unexpected financial loss.
True (A)
Pooling of risk in insurance means that policyholders combine their risks together.
Pooling of risk in insurance means that policyholders combine their risks together.
True (A)
Insurance companies do not provide reliability for businesses.
Insurance companies do not provide reliability for businesses.
In many cases, having some form of insurance is legally required.
In many cases, having some form of insurance is legally required.
What is the basic objective of insurance?
What is the basic objective of insurance?
What is the main function of insurance?
What is the main function of insurance?
What is the process of identifying, assessing and controlling threats to an organization’s capital and earnings called?
What is the process of identifying, assessing and controlling threats to an organization’s capital and earnings called?
What does insurance provide in terms of protection for a company?
What does insurance provide in terms of protection for a company?
How do all the policyholders contribute to the insurance system?
How do all the policyholders contribute to the insurance system?
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Study Notes
Insurance Basics
- Insurance is a means of reducing risks to an organization's capital and earnings.
- The main function of insurance is to eliminate the uncertainty of unexpected financial loss.
- The basic objective of insurance is to reduce risks to an organization's capital and earnings.
- In many cases, having some form of insurance is legally required.
Risk Management
- Pooling of risk in insurance means that policyholders combine their risks together.
- Risk management is the process of identifying, assessing, and controlling threats to an organization's capital and earnings.
How Insurance Works
- Insurance provides protection for a company by reducing the uncertainty of unexpected financial loss.
- Policyholders contribute to the insurance system by pooling their risks together.
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