10 Questions
What is the definition of insurance according to Vaughan E. and Vaughan?
An economic device substituting small certain cost for a large uncertain financial loss
What is the concept of Adverse Selection in insurance?
It refers to the tendency of high-risk individuals getting more insurance coverage
How can insurance be compared to gambling?
Both involve the risk of losing money based on uncertain outcomes
What are the requirements of risk to be insurable?
The risk should be definite and measurable
What is the difference between private insurance and social insurance?
Private insurance is provided by private companies, while social insurance is provided by the government
What is the definition of insurance according to Vaughan E. and Vaughan?
An economic device substituting small certain cost for a large uncertain financial loss
How can insurance be compared to gambling?
Both involve the risk of losing money based on uncertain outcomes
What are the benefits of insurance?
Financial protection against unexpected events
Define Reinsurance, and then indicate its benefits and its types in detail.
Reinsurance is insurance purchased by an insurance company to limit its own loss exposure
Explain the comparison between Insurance and Hedging
Insurance protects against uncertain events, while hedging involves reducing or controlling risk
Test your knowledge of insurance and risk with this quiz covering topics such as the definition of insurance, adverse selection, comparison between insurance and gambling, comparison between insurance and hedging, and the requirements of insurable risk. Sharpen your understanding of these key concepts to enhance your grasp of insurance and risk management.
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