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vladimir2022 [97]
3 years ago
6

whiche one of the following are not elements of an insurable risk a) determinable probability distribution b) calculate chance o

f loss c) fortuitous loss d) catastrophic loss e) none​
Business
2 answers:
marissa [1.9K]3 years ago
8 0

Answer:

Due to Chance

An insurable risk must have the prospect of accidental loss, meaning that the loss must be the result of an unintended action and must be unexpected in its exact timing and impact.

The insurance industry normally refers to this as "due to chance." Insurers only pay out claims for loss events brought about through accidental means, though this definition may vary from state to state. It protects against intentional acts of loss, such as a landlord burning down his or her own building.

Definiteness and Measurability

For a loss to be covered, the policyholder must be able to demonstrate a definite proof of loss, normally in the form of bills in a measurable amount. If the extent of the loss cannot be calculated or cannot be fully identified, then it is not insured. Without this information, an insurance company can neither produce a reasonable benefit amount or premium cost.

For an insurance company, catastrophic risk is simply any severe loss deemed too expensive, pervasive, or unpredictable for the insurance company to reasonably cover.

Statistically Predictable

Insurance is a game of statistics, and insurance providers must be able to estimate how often a loss might occur and the severity of the loss. Life and health insurance providers, for example, rely on actuarial science and mortality and morbidity tables to project losses across populations.

Not Catastrophic

Standard insurance does not guard against catastrophic perils. It might be surprising to see an exclusion against catastrophes listed among the core elements of an insurable risk, but it makes sense given the insurance industry's definition of catastrophic, often abbreviated as "cat."

There are two kinds of catastrophic risk. The first is present whenever all or many units within a risk group, such as the policyholders in that class of insurance, are all be exposed to the same event. Examples of this kind of catastrophic risk include nuclear fallout, hurricanes, or earthquakes.

The second kind of catastrophic risk involves any unpredictably large loss of value not anticipated by either the insurer or the policyholder. Perhaps the most infamous example of this kind of catastrophic event occurred during the terrorist attacks on Sept. 11, 2001.

ankoles [38]3 years ago
5 0

Answer:

okay

Explanation:

okayndhdjsoakcgheioazncndjjaak

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Journalize the following transactions for Cullumber Company.
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Answer and Explanation:

The journal entries are shown below

On Sept 1

Supplies Dr $1,020

    To Cash $1,020

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On Sept 16

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On Sept 22

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3 0
3 years ago
Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in pr
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B. underperform those who hold investments for the long term and trade infrequently.

Research indicates that investors who closely monitor their portfolios and trade quickly in response to minor fluctuations in price underperform those who hold investments for the long term and trade infrequently.

<h3>Why do investors underperform?</h3>

Market timing is the first explanation. Individual investors attempt to decide whether to invest in stocks and when to withdraw funds from them. Despite the fact that we are aware of the market's unpredictability, investors frequently invest during bull markets and exit during down markets. This is seen in the money flows into and out of mutual funds during stock market extremes. Your return will be negatively impacted if you buy high and sell low.

The fees that investors spend are the second factor contributing to their poor market performance. The majority of investors are unaware of their costs and don't care. They fail to understand how a few dollars here and there could possibly make a difference. They believe the fees and charges don't exist since they can't see them.

Learn more about investors here:

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4 0
2 years ago
DeAngelo did solid research before founding a food-tour company in a coastal community. He used information gained by his compet
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Answer:

Programmed decisions.

Explanation:

Decision-making is a process of selection from a set of alternative courses of action,which is thought to fulfill the objectives of the decision problem more satisfactorily than others.

Decision making can be regarded as the cognitive process resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice.

Types of Decision Making:

• PROGRAMMED DECISIONS : A programmed decision is one that is fairly structured or recurs with some frequency.

A decision that is repetitive and routine, in which a definite method for its solution can be established. Examples: pricing standard customer orders, determining billing dates, recording office supplies etc.

• NON-PROGRAMMED DECISIONS : Non-programmed decisions are relatively unstructured and may occurs much less often. They are made in response to situations that are unique, are poorly defined and largely unstructured.

6 0
3 years ago
Kailey James Company is evaluating a capital expenditure proposal that requires an initial investment of $14,900, has predicted
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Answer:

Year      Cashflow     [email protected]%      PV

                  $                                  $

0             (14,900)          1            (14,900)

1-12          4,000          5.6603    <u>22,640</u>

                                   NPV        <u> 7,740</u>

                                                                                                                                   

Explanation:

In this respect, we need to calculate the discount factor of annual cash  inflows for 12 years at 14 discount rate. For this purpose, present value annuity interest factor will be used since the cash inflows are constant. Then, we will multiply the annual cashflows  by the discount factor so as to obtain the present value of cash inflows. Then, we will deduct the initial outlay from the present value of cash inflows  in order to obtain the net present value of the proposal.  

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