Question

risk in insurance terminology refers to *
the uncertainty of a loss
the cause of a peril
the certainty of a loss
the hazard that causes a claim
what does risk pooling mean?
charging higher premiums
spreading risk among a large group
eliminating losses
insuring only high risk individuals

Explanation:

1. For the first question: In insurance, risk is defined as the uncertainty surrounding whether a loss will occur, its timing, or its severity. Perils are the causes of loss, hazards are conditions that increase loss chance, and certainty of loss is not risk.
2. For the second question: Risk pooling is a core insurance concept where the financial risk of potential losses is distributed across a large number of policyholders, so no single individual bears the full burden of a large loss. Charging higher premiums is risk-based pricing, eliminating losses is not possible, and insuring only high-risk individuals is adverse selection.

Answer:

1. The uncertainty of a loss
2. spreading risk among a large group