The Bulk of the Premium Required by the Insurer to Assume

question 11

Multiple Choice

The bulk of the premium required by the insurer to assume risk is used to compensate those who incur covered losses.Loss sharing is accomplished through premiums collected by the insurer from all insureds-from those who may not suffer any loss to those who have large losses.In this regard, the losses are shared by all the risk exposures.This is the essence of:

• A)risk acceptance.
• B)risk pooling.
• C)risk severity.
• D)risk mapping.
• E)risk transfer.

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Definitions:

Loyalty

A strong feeling of support or allegiance to a person, group, or organization.

Level of Work Effort

The amount of physical or mental energy an individual employee invests in completing their tasks and responsibilities within the workplace.

Dissatisfaction

Dissatisfaction refers to the condition of being unhappy or displeased with a situation, often leading to demotivation or the desire for change.

Social Awareness

The ability to understand and respond to the needs of others and to grasp social dynamics in various situations.