12 Questions
What is the primary business of the insurer according to one of the three schools of thought mentioned?
Risk assumption for a fee
Who is the party agreeing to pay for the losses in an insurance contract?
Insurer
What is the role of the insured in an insurance policy?
To transfer exposure to loss to the insurer
How is insurance commonly described as a risk mitigating technique?
By compensating for losses
What term refers to the insured's possibility of loss?
Exposure to loss
According to one of the schools of thought, what is insurance defined as?
Transfer of pure risk from insured to insurer
What is the main purpose of insurance according to Prof. Mehr and Cammack?
To combine exposure units to make their losses collectively predictable
According to Prof. Alan H. Willett, what does insurance involve?
Combining risks from many individuals to meet uncertain losses
How does the law of large numbers relate to insurance?
It helps in predicting future funds needed to cover losses accurately
What is the essence of the insurance scheme described in the text?
Combining risks of individuals into a group to pay for losses
In the Babylonian period, how did merchants protect themselves from robbers?
By joining caravans together for protection
How does insurance work according to the text?
By combining the risks of individuals into a group using contributed funds
Test your knowledge on the introduction to insurance with this quiz based on the course plan by Youvin Jayasinge. Covering topics such as methods of evaluation, understanding insurance contracts, and risk mitigation techniques.
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