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Social device used to transfer risk

Insurance

When insurance is purchased, the possibility of financial loss is _________ to the insurer.

Transferred

A condition or factor that promotes an insurable peril

Hazard

Outcome depends on chance and consideration exchanged may not be equal

Aleatory

A dishohest applicant represents what type of hazard?

Moral

A small certain loss exchanged for a large uncertain loss

Premium

Insurable interest rules exist to enforce _______.

Principle of Indemnity