Actuarial (Occurrence) Risk Arises from the

question 14

Multiple Choice

Actuarial (occurrence) risk arises from the

• A) Use of inputs and/or number of services delivered
• B) Price of inputs
• C) Need for care
• D) Price of outputs

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Definitions:

Forbearance

Forbearance is the action of refraining from enforcing a right, obligation, or debt in a legal agreement, usually as an act of leniency by the creditor.

Sufficient Consideration

A legal concept indicating that the value exchanged in a contract is recognized as adequate, making the contract binding and enforceable.

Illusory Promise

A situation in which a party appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration.

Promissory Estoppel

A legal principle that prohibits a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.