An Insurance Company Would Not Be Willing to Insure a Risk

question 23

Multiple Choice

An insurance company would not be willing to insure a risk if it

• A) results from political disruptions.
• B) has a measurable loss.
• C) results from an accident.
• D) has a low probability of occurring.

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Definitions:

Immediate Decrease

A sudden decrease in value or amount, happening without delay or within a very short time frame.

Ledger Balance

The total balance of all accounts in a business's ledger, reflecting the current financial situation before any adjustments or reconciliations.

Smart Card

Much like an automated teller machine card; one use is within corporations to control access to information by employees.

Automated Teller Machine

An electronic banking machine that allows customers to complete basic transactions without the need for a branch representative.