1. Pure risk refers to a situation where there is the probability of loss or gain. True or False? Explain and give an example.

2. A franchise deductible is different from a straight deductible, except that once the amount of loss equals the deductible, the entire loss is paid in full. True or False? Explain?

3. Indemnity is supported by two concepts: subrogation and contribution. True or false? Explain and give an example.

4. In life insurance, the cash surrender value is the same in every policy year when the insured surrenders the policy before its maturity. True or false? Explain?

5. Fundamental risks are insurable risks. True or false? Explain and give an example.