Characteristics of a fortuitous loss include which of the following I. The loss is certain to occur. II. The loss occurs as a result of chance.

A risk-control technique that aims at reducing the probability of loss so that the frequency of losses is reduced.

Which of the following is most likely to be insured at the federal government level? A) product liability insurance. B) homeowner insurance C) auto insurance. D) unemployment insurance.

Traditionally, risk has been defined as  

Relative variation of actual loss from expected loss, which varies inversely with the square root of the number of cases under observation

Risk management technique in which an individual or a firm retains part or all of the losses resulting from a given loss exposure.

Financial loss that results directly from an insured peril

Situation in which there are only the possibilities of loss or no loss.

The insurance definition will include “.. is the pooling of risks…”  Explain what is meant by the term pooling and the benefit that it provides to the individual purchaser of insurance.

Cause or source of loss.