Published on November 25, 2015
For more course tutorials visit www.uophelp.com Discussion Questions Due on Day 2 Tuesday and Day 4 Thursday in the Main Forum Recall that pure risk is defined as a "situation in which there are only the possibilities of loss or no loss," and speculative risk is described as a "situation in which either profit or loss is possible" (Rejda, 2008, p. 6). Based on what you know about these types of risk, why do private insurers typically refuse to insure speculative risks? How does the law of large numbers affect speculative and pure risks? Discuss why personal, property, and liability risks are pure risks and provide examples in your response. Recall that insurance creates benefits and costs for society. Review some of the benefits of insurance outlined in Ch. 2 (pp. 28–29) of the text. Compare those benefits with the costs of insurance described on the Web site for the Coalition Against Insurance Fraud at www.insurancefraud.org. Click on the Consumers button followed by the Useful Link and then click on the Learn About Fraud link. According to the Web site, how much does insurance fraud cost Americans each year? How are individuals and families impacted by insurance fraud? Why should the benefits and costs of insurance matter to you? In your opinion, do the benefits outweigh the costs or do the costs outweigh the benefits?