Insurance is based on a mathematical principal called the Law of Large Numbers.
What are the 3 Types of Risk?
Speculative
Protective
Pure
Insurable
When there is a chance of gain as well as a chance of loss.
Insurance is intended to protect against a chance of gain as well as a chance of loss..
When there is a chance of loss only.
All pure risk are insurable.
One that an insurance company is willing to accept.
speculative
Check all that apply that must be in place before its insurable.
The loss must be measurable.
Low probability of loss occurring.
The loss must be rigorous.
Less than catastrophic results.
The loss most be significant.
