Which is not a management practice for reducing the problems of adverse selection and moral hazard in insurance? O deductibles. O restrictive provisions. reinsurance. O limiting conditions. none of these answers.

Q: Is self-insurance the same as going without insurance? Why or why not?

A: The advantages of being self-insured area unit value savings and management of the insurance…

Q: What kind of insurance  forms may not be included in the comprehensive forms?

A: Insurance: Insurance is the protection against an individual or an asset for the financial losses…

Q: Gambling is most of the time confused as Insurance . Use practical example to show the difference…

A: Personal finance is referred as the term which manages the money, saving and investments of an…

Q: A life insurance company worries that people with low risk of dying will not buy insurance because…

A: The insurance company will generally end up losing a lot of money. If an insurance company takes an…

Q: Briefly explain the difference between an insurance and an assurancepolicy?

A: Insurance policy and Assurance policy are two different policies.  Insurance policy provides…

Q: Does the rule rendering an insurance contract voidable as a result of concealment apply with equal…

A: Property insurance is a type of insurance coverage that protects real or personal property against…

Q: In what circumstance would a property insurance claim be rejected?

A: An insurance claim is a written request for coverage or compensation from an insurance company for a…

Q: What is the role of Insurance company?

A: Answer no 3. Insurance companies are a part of financial system and considered as a safeguard the…

Q: True or False? 1. An insurance contract is derecognized when it is extinguished and when it is…

A: An insurance contract is a contract between the two parties where one party promises to pay the…

Q: S1: It is more advantageous and beneficial to the insured if there are more riders included in the…

A: Rider in insurance industry is an additional benefit given to the insured for the enhancement of…

Q: If the chance that a risk will occur cannot be reasonably predicted or the possible financial loss…

A: An uninsurable risk is one that presents an unknown or unacceptable risk of loss for an insurance…

Q: sonal assistan ification of a uring that the

A: Introduction : In simple words, the given question relates to the concept of insurance. In an…

Q: why a company would prefer to hedge over taking an insurance to minimize on risk

A: Company faces many kinds of risks during the operating of the company so company has to manage all…

Q: Collision and comprehensive: Multiple Choice O O Only pay the insurer Only pay the insured Are…

A: The purchase of collision insurance is often only possible in conjunction with the purchase of…

Q: risk pooling premium actuarially fair insurance premium deductible third party payer moral bazard

A: In the world of finance insurance is an important concept. Insurance is used for the purpose of risk…

Q: 16. What is meant by a “hard market” and a “soft market” within the insurance industry?

A: Insurance Market- The business of selling and buying insurance products and the companies or parties…

Q: The promises of the insurer are found in the insurance policy. True False

A: True. The insurance policy contains the terms, conditions, and promises made by the insurer to the…

Q: Which of the following is a type of captive formed to write most types of liability insurance…

A: A captive insurance firm is a special arrangement for insurance, which is a subsidiary insurer to…

Q: IDENTIFICATION: What area of insurance companies is faced with the risk that estimates of loss…

A: Insurance risk management is referred as an assessment as well as quantification of the financial…

Q: What is the relationship between risk management and insurance buying and why do some argue that…

A: The question is based on the concept of risk management and the use of insurance as a tool of risk…

Q: The ability to purchase and immediately assign life insurance policies increases the problems caused…

A: The problem of asymmetric information is common to all insurance markets. Adverse selection means…

Q: Insurance risk management) For the following types of risk exposures, explain why the amount of…

A: Risks within the insurance sector are identified, evaluated, and mitigated as part of insurance risk…

Q: Which of the following is the main objective of P2P insurance   O a. Less Fraudulent Claims   O…

A: The acronym P2P insurance stands for peer to peer insurance. It is formed by a group of people who…

Q: Can both moral hazard and adverse selection occur in the insurance market s the difference between…

A: The insurance industry is an important part of the overall financial industry. Insurance is bought…

Q: What is the consideration for the insurer in an insurance contract?

A: Contract:   Contract is an agreement among two parties or more parties which includes enforceable…

Q: Underwriting risk results when the premiums generated on a given insurance product line are…

A: Underwriting refers to the process of establishing a price pertaining to the risk associated with…

Q: Negative covenants tend to be less significant than affirmative covenants because they place direct…

A: > The answer is "FALSE"

Q: Why would an insured inflate claims and who are the ones to suffer for it?

A: Insurance can be defined as the contract that is signed by an insurer indemnifies another person…

Q: Indicate whether the statement is true or false, and justify your answer.In the model of insurance…

A: According to the simple model, the state of the income utility curve decides one's desire for risk.…

Q: 2. When two or more policies cover the same loss, the right of the one insurer to call upon the…

A: The following are some of the Principles of Insurance Principle of Contribution Principle…

Q: what is one example of a risk management strategy used by insurance companies to mitigate…

A: An underwriter's potential loss is known as underwriting risk. Underwriting risk in insurance can…

Q: When compleling an insurance applicalion, a producer should A. complete as much of the application…

A: The job of the producer is to make sure that the applicant knows all the features of the insurance…

Q: TRUE OR FALSE 1. PFRS 4 SUPERSEDES PFRS 17 2.INSURANCE RISK WILL BE DEEMED SIGNIFICANTLY ONLY IF…

A: PFRS refers to the Philippine Financial Reporting Standards which are used by the accountants for…

Q: TRYE OR FALSE   1- Insurance should be considered as a last resort in risk management ,and should…

A: Two statements have been given on the topic of risk management. We need to find they are…

Q: Suppose Mylan could write an insurance contract whereby it is insured against all penalties…

A: Loss contingencies refer to potential losses that may occur in the future, arising from past events…

Q: 33) When a policy matures on the death of the insured , it is called as

A: Whole life insurance policy it represents a contract between the insured and insurer that as long as…

Q: How can moral hazard lead to more costly insurance premiums than one was expected?

A: Definition : Moral hazard : The risk of a person not entering into an agreement in good conscience…

Q: why has insurance delined as arisk fincaing technique

A: Insurance is a protection that is offered by a company (insurer) to the buyer (insured) in lieu of…

Adverse Selection