Standard #: SS.912.FL.7.6


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Describe how an insurance contract can increase the probability or size of a potential loss.


Examples


Example: Given an accident scenario, calculate the amount that would be paid on an insurance claim after applying exclusions and deductibles.

Clarifications


Clarification 1: Instruction includes understanding that having insurance may result in the policyholder taking more risks.

Clarification 2: Instruction includes understanding that deductibles and copayments are cost-sharing features that encourage the policyholder to take steps to reduce the potential size of an insurance claim.



Related Courses

Course Number1111 Course Title222
2102300: Economics and Personal Finance (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102305: Economics and Personal Finance Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102371: Personal Finance and Money Management (Specifically in versions: 2023 - 2024, 2024 and beyond (current))
2102373: Personal Finance and Money Management Honors (Specifically in versions: 2023 - 2024, 2024 and beyond (current))


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