MANAGEMENT

Detailed explanation-1: -Purpose of insurance Its aim is to reduce financial uncertainty and make accidental loss manageable. It does this substituting payment of a small, known fee-an insurance premium-to a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss.

Detailed explanation-2: -An insurance premium is the amount of money that an individual or business must pay for an insurance policy. The insurance premium is income for the insurance company, once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy. Deductible.

Detailed explanation-3: -Which of the following involves sharing an uncertain risk with another similar group? Homogeneous exposure units.

Detailed explanation-4: -How do long-term goals differ from short-term goals? Long-term goals require more patience than short-term goals do. Which of these is the best example of successfully managing a financial asset?