FIS 250 Week 1 DQ 2

Author: admin

February 18th, 2022

This pack of FIS 250 Week 1 Discussion Question 2 consists of:

1. Recall that pure risk is defined as a “situation in which there are only the possibilities of loss or no loss,” and speculative risk is described as a “situation in which either profit or loss is possible” (Rejda, 2008, p. 6). Based on what you know about these types of risk, why do private insurers typically refuse to insure speculative risks? How does the law of large numbers affect speculative and pure risks? Discuss why personal, property, and liability risks are pure risks and provide examples in your response.2. Recall that insurance creates benefits and costs for society. Review some of the benefits of insurance outlined in Ch. 2 (pp. 28

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