Question 3

The chance of loss could be increased or decreased by different conditions which are called hazards. For each of the following, identify the type of hazard.

a) A motorist drives too fast.

b) A man fakes an accident to collect money from an insurer.

c) The new state regulation that require insurers not paying any claims in case of suicide.

Question 4

a) Explain how a society benefits from loss prevention.

b) Give at least three examples of loss-prevention programs supported by insurance companies.