Exam 2: Insurance and Risk

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Which of the following is an example of private insurance?

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Characteristics of a fortuitous loss include which of the following? I.The loss is certain to occur. II.The loss occurs as a result of chance.

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Which of the following types of risks best meets the requirements for being insurable by private insurers?

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Insurance companies collect premiums in advance of loss,and the funds collected are not needed to pay immediate losses and expenses; these funds can be loaned to businesses.Because of this fact,insurance benefits society by

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Which of the following statements about the insurance industry as a source of investment funds is (are)true? I.These funds result in a lower cost of capital than would exist in the absence of insurance. II.These funds tend to promote economic growth and full employment.

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