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What is insurance? ✔✔Insurance is the legal contract where two parties agree that if something will happen, a value will be exchanged. What's the difference between pure risk and speculative ri... sk? ✔✔Pure risk is when you'll lose it all or there will be no change. Speculative risk you can either win or lose. What is peril? ✔✔peril is the causes of loss insured against in an insurance policy What is hazard? ✔✔conditions that increase the probability of something bad happening What's the diff between moral, morale, and physical hazard? ✔✔physical is the hazard that results from physical body issues. Moral hazard is the evaluation of character (lying) morale hazard is an indifference which causes risk. What is the law of large numbers? ✔✔the larger the number of people more exposed to risk, the more predictable the risk outcome. [Show More]

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