This chapter reviews basic principles that provide a foundation for the insurance industry. They range from the concept of risk, to the idea that individuals and businesses can minimize losses by transferring and sharing risks, to the application of the law of large numbers. Various principles also determine why some risks of loss are insurable whereas others are not.
LaTonya
John
LaTonya's son, who would like to inherit the home some day
First City Bank
Avoidance
Reduction
Retention
Transfer
Transfer
Retention
Avoidance
Reduction
Retention
Control
Avoidance
Transfer
Physical
Moral
Morale
Obvious
Fire
Lightning
Wet pavement
Flood
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