HNDFS保险学1.doc

Q1:Two uses of insurance（Direct/Indirect）: Primary function: transfer risk to other and compensated Secondary function: Direct use： 1. Stimulate business activities. 2. Solution to social difficulties. 3. Remove business distractions and problems. 4. Promotion of loss prevention. 5. Promote invisible exports. Indirect use: 1. Promote investment in nation. 2. Marginally reduce price of goods and service. 3. Reduce insurance premiums. Q2: Definition of risk: Definition: Hazard, danger, exposure to mischance or peril. Risk is defined as the uncertainty of loss. Different type of risk: Pure risk