Week 2 Life Insurance
Define insurance from the viewpoint of the individual and of society.
Write a 200- to 250-word response for each of the following questions:
Identify and explain the two essential features in the operation of insurance.
Explain how the law of large numbers supports the operation of the insurance mechanism.
Identify and explain the desirable elements of an insurable risk.
Explain what is meant by adverse selection and why it is a problem for insurers.
Explain the economic contributions of insurance.