Application Questions

  1. Compare the risk of fire with the risk of war in terms of how well they meet the requirements of an ideally insurable risk.

    1. a. Private insurers provide social and economic benefits to society. Explain the following benefits of insurance to society.

      1. Indemnification for loss

      2. Enhancement of credit

      3. Source of funds for capital accumulation

    2. Explain the major costs of insurance to society.

  3. Buildings in flood zones are difficult to insure by private insurers because the ideal requirements of an insurable risk are difficult to meet.

    1. Identify the ideal requirements of an insurable risk.

    2. Which of the requirements of an insurable risk are not met by the flood peril?

  4. Private insurance provides numerous coverages that can be used to meet ...

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