01.Core Concepts

2.1 a. Define insurance based on the definition drafted by the Commission on Insurance Terminology. b. Explain the basic characteristics of insurance based on the aforementioned definition. 2.2 Explain the law of large numbers. 2.3 a. Describe the characteristics of an ideally insurable risk from the viewpoint of a private insurer. b. Explain whether fire and unemployment meet the requirements of an insurable risk.