Mar 5, 2025 | All Lines, Study Notes
General Insurance Study Tip: Make note cards with the Bolded words on one side and the definition on the other. Insurance is the transfer of risk of loss. Risk is the uncertainty or chance of loss occurring Two types of Risk: Pure Risk is loss or nothing, no chance of...
Jan 22, 2025 | All Lines, Study Notes
Law of Large Numbers When we buy insurance, we are paying a relatively small amount of money (the premium) and in return we may be receiving a very large claim payout (this concept is called Aleatory, an exchange of unequal amounts). How can insurance companies do...
Sep 17, 2024 | All Lines, Study Notes
What is STARR Let’s talk about risk. Risk is the uncertainty of chance of loss. As we live our lives, we live with the risk that we may crash our car, that our house burns down, that our spouse dies or that we get sick. We lose out if any of these things were to...
