The spreading of losses incurred by a few individuals over a largeer group, so that average loss is substituted for actual loss, is known as?
Pooling of losses
All of the following are ideal requirements that must be met for a risk to be privately insurable?
Government insurance programs include insurance designed to deal with complex economic problems?
Social insurance programs
All of the following risks are publicly insurable?
Insurers use a process of selecting and classifying insurance applicants to prevent individuals who have a higher than average probability of loss from obtaining insurance at average rates?
Franklin is concerned that if he damages someone else's property or injures someone, he will have to pay a large damage award. What kind of insurance can Franklin purchase to protect himself against such claims?
All of the following are benefits of insurance to society?
All of the follwoing are characteritics of an insurable risk?