Briefly explain the following characteristics of insurance: a. Pooling of losses b. Payment only for random losses

Question:

Briefly explain the following characteristics of insurance:

a. Pooling of losses

b. Payment only for random losses

c. Risk transfer

d. Indemnification

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Gapenskis Understanding Healthcare Financial Management

ISBN: 9781640551091

8th Edition

Authors: George H. Pink, Paula H. Song

See More Books

Question Posted: Dec 27, 2023 06:53 AM

See More Questions

Explain each of the following characteristics of a typical insurance plan. a. Pooling of losses b. Payment of fortuitous losses c. Risk transfer d. Indemnification
Briefly explain the following life insurance contractual provisions. a. Suicide clause b. Grace period c. Reinstatement clause
Briefly explain the following debt features: (a) Indenture (b) Restrictive convenant (c) Trustee (d) Call provision
Recruitment and selection involves the following except: a) building a pool of candidates. b) applicants completing application forms. c) downsizing the organization. d) employment planning and...
A rapid thermal processing system for microelectronic manufacturing uses three concentric lamp heater arrays to keep the wafer temperature uniform. The gain matrix for the system is:The system...
The graph of a function f is shown below. To print an enlarged copy of the graph, go to MathGraphs.com. (a) Sketch f. (b) Use the graph to estimate lim x f(x) and lim x f(x). (c) Explain the answers...
A piece of wool is used to charge two plastic spheres. When the spheres are held $200 \mathrm{~mm}$ apart, they repel each other with $7.00 \mathrm{~N}$ of force. If the wool ends up with a...
Select the best answer. 1. In June 2015, a public university bills and collects $30 million in tuition for the summer semester that runs from June 1 through July 15. In addition, in May and June it...
6.Max Co is a large multinational company which expects to have a $10m cash deficit in one month's time. The deficit is expected to last no more than two months. Max Co wishes to resolve its...
Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will have the opportunity to establish payroll records and to...
What is adverse selection, and how do insurers deal with the problem?
What are the major implications of health reform for the financial management of healthcare organizations?
Write the equations for four ratios that are used to measure how effectively a firm manages its assets.
A Florida state savings bond can be converted to $1,000 at maturity five years from purchase. If the state bonds are to be competitive with U.S. savings bonds, which pay 1% interest compounded...
The Container Store CEO Melissa Reiff believes in an organizational culture that puts employees first. The turnover in the company is around 10% compared with nearly 100% turnover in the retail...
Looking for a job can be frustrating. You spend hours completing applications and waiting for responses. You get some interviews and then wait again to be called back, and you may get rejection...
You have noticed that one of your team members is not following through on the part of a project assigned to him. He is very motivated and has told you he wants a promotion; however, his recent...
The current exchange rate between the euro and the U.S. dollar is 0.925884. This means that one dollar can buy 0.925884 euros. How many dollars would you get for 1,000 euros?
The researchers at IAAI have forecasted positive trends for both job creation and consumer confidence. Which, if either, of these trends should have a positive affect on stock prices? Institutional...
The pendulum consists of two rods: AB is pin supported at A and swings only in the y-z plane, whereas a bearing at B allows the attached rod BD to spin about rod AB. At a given instant, the rods have...
You annually invest $1,500 in an individual retirement account (IRA) starting at the age of 20 and make the contributions for 10 years. Your twin sister does the same starting at age 30 and makes the...
Construct a loan amortization schedule.
Use an interest table or a financial calculator.
Rex Metal Fabricators (RMF) buys scrap metal and produces components for buildings and other structures. The purchase contracts specify an average quality level of 73 percent. That is, 73 percent of...
The statement of financial position of Ayayai Corporation as at December 31, 2023, is as follows: Ayayal Corporation Statement of Financial Position December 31, 2023 Assets Goodwill (Note 1) $31,500...
2.) A 400.0 N, 300.0 N and 200 N child sit on a long seesaw of 5.00 m. If the 400N child sits 1.25 m left of the fulcrum (at center) and the 200N sits 0.5 m right of the fulcrum, where should the...

Briefly explain the following characteristics of insurance: a. Pooling of losses b. Payment only for random losses

Question:

Step by Step Answer:

a Pooling of Losses Definition Insurance involves the pooling of losses a mechanism where a large group of individuals or entities collectively contribute premiums to create a common fund This fund is ...View the full answer

Gapenskis Understanding Healthcare Financial Management

Students also viewed these Business questions