Risk & Insurance

..........................is the transfer of a burden  of the risk from the  insured to the insurer.

Insurance is a legal .................... that protects people from financial losses.

Insurance is a contract between the insurer and  the insured in which the ..................... promises to pay the financial loss to the insured.

• insured

• insurer

• policyholder

• shareholder

The policyholder is the party of a contract of insurance who is liable to pay claims arising under it.

• True

• False

Insurance creates a new risk where none existed before.

• True

• False

Gambling creates a new risk where none existed before.

• True

• False

..................... is always socially productive.

• Insurance and gambling

• Gambling

• Insurance

Insurance is based on the law .........................

Large number of similar exposure units is not a requirement for insurability.

• True

• False

The loss must be definite as to cause, time, place, and amount.

• True

• False