Question

what is a policy in insurance terms?
a monthly payment plan
a list of covered items
a risk assessment document
the contract between insurer and individual
question 2
2 pts
which is an example of a speculative risk?
car accident
natural disaster
house fire
gambling

Explanation:

1. An insurance policy is a legally binding contract that outlines the terms, coverage, obligations, and rights of both the insurance provider (insurer) and the person/entity being insured (individual). The other options describe related insurance concepts: a monthly payment is a premium, covered items are part of the policy's coverage, and a risk assessment is used to underwrite the policy, not the policy itself.
2. Speculative risk is a type of risk where there is a chance of gain or loss, unlike pure risk which only involves potential loss. Gambling can result in either a profit (gain) or a loss, while car accidents, natural disasters, and house fires are pure risks that only lead to negative outcomes (loss/damage).

Answer:

1. The contract between insurer and individual
2. Gambling