GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Pure Risk
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Pure Premium
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Product Liability
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Retrospective Rating
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Detailed explanation-1: -Pure risk refers to risks that are beyond human control and result in a loss or no loss with no possibility of financial gain.
Detailed explanation-2: -There are no opportunities for gain or profit when pure risk is involved. Pure risk is generally prevalent in situations such as natural disasters, fires, or death. These situations cannot be predicted and are beyond anyone’s control. Pure risk is also referred to as absolute risk.
Detailed explanation-3: -A risk is simply the possibility of a loss, but a peril is a cause of loss. A hazard is a condition that increases the possibility of loss.
Detailed explanation-4: -Personal Pure Risk. Personal risk can directly affect an individual person and can involve a loss of earnings and assets. Property Pure Risk. Liability Pure Risk. 18-Nov-2022