Explain the historical definition of risk.

What is a loss exposure?

How does objective risk differ from subjective risk?

Give an example of how the definitions in c. above apply - what do they mean?

Explain the difference between a direct loss and an indirect or consequential loss.

Give an example of a direct loss and an indirect or consequential loss.

Explain the law of large numbers.

Name three elements of an Ideally Insurable Risk and describe what makes them ideal.

Why are most market risks, financial risks, production risks, and political risks considered difficult to insure by private insurers?