Insurance Exam Made Easy | Risk Management Explained

Study cheat sheet

This lesson covers the fundamentals of risk management in insurance, including definitions of risk, peril, and hazard, with distinctions between speculative and pure risk. It explains key risk management strategies using the acronym SR (sharing, transfer, avoidance, retention, reduction) and the law of large numbers. The lesson also details the criteria for insurable risks using the acronym CANHAM, discusses adverse selection and reinsurance, and outlines the three main types of insurance companies: stock, mutual, and fraternal insurers.

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