Shares its risk with another insurer by paying the

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Income Tax Fundamentals 2019
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Chapter 5 / Exercise 32
Income Tax Fundamentals 2019
Whittenburg/Gill
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shares its risk with another insurer, by paying the other insurer a portion of the premium it receives for the risk, it is called (A) shared retention (B) reinsurance
43) When one does something a reasonable person would not do, or does not do something a reasonable person would do, this is called
44) What is the process of establishing rates for each class of insurance called?
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Income Tax Fundamentals 2019
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Chapter 5 / Exercise 32
Income Tax Fundamentals 2019
Whittenburg/Gill
Expert Verified
45) To determine the premiums required for a class of business, actuaries apply the principles derived from
46) When insurers try to spread risk to reduce risk, and increase their profit by writing business in as many different locations as practicable, this is called (A) diversity of location (B) diversity of type of risk
47) The three (3) main categories of insurance are
48) The first Canadian insurer grew from which organization?
(B) Nova Scotia Fire Insurance Association 49) Which of the following contained one of the earliest applications of insurance principles?
50) To indemnify means to (A) make financial provisions for dealing with potential losses (B) put back in the same financial position as just prior to the loss.
51) Very large corporations establish insurance companies sometimes offshore, to insure the corporations’ own risks. One benefit from this is that they enjoy a better tax position. What are these insurance companies called?
52) A bad condition eg a slippery floor that existed which influenced the outcome of a loss is called
53) An event eg an earthquake that gives rise to a loss is called a
(B) peril 54) Risk is the chance that an event could occur, which would leave you in a worse situation rather than a better one. The basis of risk is (A) uncertainty (B) possibility of loss

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