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Master of Business Administration - MBA Semester 4 MF0018 Insurance and Risk Management assigning Set- 1 Q.1 Explain opportunity of bolshie and degree of risk with exercisings autonomic nervous system:- fate of loss Loss is the injury or damage borne by the insured in consequence of the happening of one or more of the accidents or misfortunes against which the insurer, in consideration of the premium, has undertaken to assure the insured. Chance of loss is defined as the prob cleverness that an event that causes a loss will occur. The chance of loss is a consequent of two factors, namely peril and incident. Hazards are further sort out into the following four types: * Physical menace This is a hazard likely to happen due to the physical characteristics of an object, which adds the chance of loss. For example defective wiring in a building which enhances the chance of fire. * Moral hazard It is an increase in the probability of loss due to dishonesty or character defects of an insured person. For example, anxious of unsold goods that are insured in order to increase the amount of claim is a moral hazard. * Morale hazard It is an attitude of recklessness or indifference to losses, because the losses were insured.

For example, careless acts like leaving a door unlocked which makes it lenient for a burglar to enter, or leaving car keys in an unlocked car increase the chance of loss. * Legal hazard It is the severity of loss which is increased because of the regulatory framework or the legal system. For example actions by government departments restricting the ability of insurers to withdraw due to poor underwriting results or a bare-assed environment law that alters the risk liability of an organisation. stop of risk Degree of risk refers to the intensity of objective risk, which is the amount of uncertainty in a given situation. It can be assessed by finding the difference between expected loss and actual loss. The reflexion used is Degree of risk = Degree of risk is... If you requirement to get a full essay, order it on our website: Orderessay

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