The Regulatory Norms and Disclaimers
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Added on 2020-04-01
The Regulatory Norms and Disclaimers
Added on 2020-04-01
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Introduction to insurance
TABLE OF CONTENTSQuestion 1..................................................................................................................................3Question 2..................................................................................................................................3Question 3..................................................................................................................................4Question 4..................................................................................................................................4References..................................................................................................................................5
QUESTION 1A risk that imitates to the regulatory norms and disclaimers cited under the insurance policyin such a manner that the conditional aspects of insurance are fully satisfied is known asinsurable risk (Weimer & Vining, 2017). A risk is not said to be insurable in case if it is verylarge, uncertain, immeasurable, or not definable.TransactionExistenceofinsurable riskJustificationRusting of an unprotectediron structureYesIt can be estimated by consideringstandard aspects of that industryGenetic defect affects 9 to10 new-born males in afamilyNoNo, because it is not definableDeveloping a cancerNoNo, because it is uncertain Eventual obsolescence of apersonal computerYesIt can be measured as insurersprovide general protection to assetsof the business. Losing money at casinoNoNo, because it is uncertain and it isnot definable.QUESTION 2The significant benefits that insurance provides to the society are as follows:Repayment of damages or lossesLess burden on economyInvestment opportunitiesFewer concern and panic against future securitiesInsurance helps in providing security against jeopardy or uncertaintyMajor benefits of insurance to an individual:It allows the insurer to focus on work without the fear of failureIt promote habits of savings on regular basis, subjected to life insuranceInsurance policy can also be mortgaged and further finance can be raised anytime(Borch, Sandmo, & Aase, 2014).Insurance policy, particularly plans for pension offer income security duringretirementThe insurer gets benefits from tax from the amount paid on premium
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