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4 Cards in this Set
- Front
- Back
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What is a premium? |
Amount paid to an insurer in consideration of the acceptance of the risk |
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What does the premium relate to? |
Sum insured and nature of the risk |
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Why is a large pool required/wanted by the insurer? |
Effective operations of the law of large numbers. Insurers can determine a more accurate premium chargeable to the insured |
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What happens if the insureds payment has not gone through due to credit card payments taking time? |
It is implied that the insurer promises to pay and the contract is valid |
