INSURING PERILS AND INSURING ORGANIZATION
■ Describe the characteristics of an ideally insurable loss exposure
■ Explain why a broad group of insureds is needed to assure affordable insurance
■ Describe how risk classification systems operate and how can they result in subsidization in insurance markets
■ Describe the causes of adverse selection in insurance markets
■ Describe the characteristics of a well-designed insurance risk classification system
■ Describe the different types of private insurance companies in the United States
