ECONOMICS
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a risk-sharing mechanism in which the members of a group agree to be collectively responsible for losses
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a reduction or disappearance of economic value
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the payment, or one of the periodical payments, a policyholder agrees to make for an insurance policy
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the cause of loss
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Detailed explanation-1: -A health insurance risk pool is a group of individuals whose medical costs are combined to calculate premiums. Pooling risks. together allows the higher costs of the less healthy to be offset by the relatively lower costs of the healthy, either in a plan overall or within a premium rating category.
Detailed explanation-2: -Risk pooling is the practice of sharing all risks among a group of insurance companies. With risk pooling arrangements, instead of participants transferring risk to someone else, each company reduces their own risk.
Detailed explanation-3: -Pooling of Losses Pooling or the sharing of losses is the essence of insurance. Pooling is the spreading of losses incurred by the few over the entire group, so that in the process, average loss is substituted for actual loss.
Detailed explanation-4: -Shared-risk pool is a process that consists of identifying potential project risks that may cause cost and schedule growth, estimate the cost of such risks, create a contingency fund, and use management strategies to minimize the risk impacts on cost and schedule (1).