Get premium membership and access questions with answers, video lessons as well as revision papers.
• Indemnification. Indemnification means that the insured is restored to his/her approximate financial position before the occurrence of the loss.
• Payment of fortuitous losses. A fortuitous loss is a loss which occurs as a result of chance. In other words it is accidental.
• Risk transfer. This means that the pure risk is transferred from the insured to the insurer, who typically is in a stronger financial position to pay for losses than the insured.
• Pooling of losses. Pooling is the spreading of losses incurred by the few over the entire group, so that the process average loss is substituted for actual loss. Pooling involves the grouping of a large number of exposure units so that the law of large numbers can operate to provide a substantially accurate prediction of future losses.
skilled writter answered the question on May 1, 2018 at 16:11
- State four elements that are required for an insurance transaction.(Solved)
State four elements that are required for an insurance transaction.
Date posted: May 1, 2018. Answers (1)
- Define the term insurance according to commission on insurance terminology of the American Risk.(Solved)
Define the term insurance according to commission on insurance terminology of the American Risk.
Date posted: May 1, 2018. Answers (1)
- State six functions of money(Solved)
State six functions of money
Date posted: May 1, 2018. Answers (1)
- Differentiate between money and wealth.(Solved)
Differentiate between money and wealth.
Date posted: May 1, 2018. Answers (1)
- Explain five ways in which privatization would be beneficial to country(Solved)
Explain five ways in which privatization would be beneficial to country
Date posted: May 1, 2018. Answers (1)
- Outline differences between hypermarkets and departmental stores(Solved)
Outline differences between hypermarkets and departmental stores.
Date posted: April 30, 2018. Answers (1)
- Importance of national income to an economy(Solved)
Importance of national income to an economy
Date posted: April 30, 2018. Answers (1)
- Discuss some of the process for assessing risk(Solved)
Discuss some of the process for assessing risk
Date posted: April 29, 2018. Answers (1)
- State the rights and duties of a partner in partnership type of business(Solved)
State the rights and duties of a partner in partnership type of business.
Date posted: April 29, 2018. Answers (1)
- (a)Define partnership (b)State characteristics of partnership(Solved)
a)Define partnership
b)State characteristics of partnership
Date posted: April 29, 2018. Answers (1)
- (a)Define sole proprietorship (b)state the features of sole proprietorship (c)Explain the formation of sole proprietorship (d)state the sources of capital of sole proprietorship (d)Explain the management of sole proprietorship(Solved)
a)Define sole proprietorship
b)State the features of sole proprietorship
c)Explain the formation of sole proprietorship
d)State the sources of capital of sole proprietorship
e)Explain the management of sole proprietorship
Date posted: April 29, 2018. Answers (1)
- Define a business unit(Solved)
Define a business unit
Date posted: April 29, 2018. Answers (1)
- Give five differences between public corporation and public limited company(Solved)
Give five differences between public corporation and public limited company.
Date posted: April 28, 2018. Answers (1)
- Outline ways in which peace in a country can enhance entrepreneurial development(Solved)
Outline ways in which peace in a country can enhance entrepreneurial development.
Date posted: April 28, 2018. Answers (1)
- Outline the differences between a bondholder and shareholder(Solved)
Outline the differences between a bondholder and shareholder.
Date posted: April 28, 2018. Answers (1)
- Outline five ways in which business is useful to community(Solved)
Outline five ways in which business is useful to community.
Date posted: April 28, 2018. Answers (1)
- Explain five reasons why consumers need protection against malpractices by some traders(Solved)
Explain five reasons why consumers need protection against malpractices by some traders.
Date posted: April 28, 2018. Answers (1)
- Explain the four banking systems(Solved)
Explain the four banking systems.
Date posted: April 27, 2018. Answers (1)
- State the functions of a risk manager(Solved)
State the functions of a risk manager.
Date posted: April 27, 2018. Answers (1)
- State the importance of risk management(Solved)
State the importance of risk management
Date posted: April 27, 2018. Answers (1)