The two catagories for risk are:
general risk, speculative risk
speculative risk, specific risk
ideal risk, pure risk
pure risk, speculative risk
Insurance addresses the issue of speculative risk.
In life insurance the insurable interest condition must exist:
at the time of application only
at the time of issue only
at time of loss only
none of the above
ABC Insurance Company is incorporated in the State of California. Therefore it would be correct to refer to this insurer as:
reciprocal
interexchange
domestic
mutual
ABC Insurance Company raises capital from investors. These investors share in the profits and losses of the insurer. This company would therefore be:
fraternal
assessment
stock
