5 Questions
What is the main role of an insurer in insurance?
Allocating and spreading the risk
When can a benefit not be the subject matter of a contract of insurance?
When it is not in monetary form
Which of the following statements best describes the historical context of insurance?
The relationship between an insurer and the subject matter has evolved significantly
What is the significance of 'risk transfer' in insurance?
Risk transfer is one of the main risk responses in insurance
What is the role of the party to the insurance contract who is in control of the party assuming the risk?
This party determines the benefits that can be the subject matter of the insurance contract
Study Notes
Insurance Basics
- Insurance involves allocating and spreading risk, which is one of the main risk responses.
Insurance Contract
- A party in the insurance contract is responsible for assuming the risk, known as the insurer.
- The other party in the insurance contract has a relationship with the subject matter of the insurance.
History of Insurance
- There is a brief history of insurance dating back to 6.0 (unspecified era or time period).
Contract of Insurance
- Not all benefits can be the subject of an insurance contract.
- A benefit in money is not the only requirement for a valid insurance contract.
Test your knowledge on insurance fundamentals, including risk allocation, risk transfer, insurance history, and insurance contracts. Learn about the relationship between the insurer and the insured party in insurance agreements.
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