Risk and Insurance Principles
Chapters in this video
What this video covers
- How risk differs from an exposure, a peril, and a hazard, including why fixing a hazard is not the same as recovering from a loss
- How to calculate a protection gap by adding financial needs and subtracting available resources
- How insurance transfers specified financial consequences and pooling helps estimate claims across similar exposures
- How adverse selection affects a pool and why insurers use underwriting
- How to calculate out-of-pocket costs by applying the deductible first, then coinsurance
- How life insurance purposes differ from health insurance purposes, and why coverage depends on the written contract
- Who the policyowner is, and why a pool average does not determine an individual member's benefit
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Life and Health course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.