Page 9 - Life Assurance

urance portfolio of 30 or 40 cars as such
small numbers of a similar kind, however, it is
possible to forecast to a degree approaching
accuracy the proportion of the whole that will
sustain loss.

2- There must be possibility to calculate the
chance of loss:

The likelihood of an event or loss
occurring may be mathematically calculated or it
may be based on the statistical results of past
experience. If the incidence of loss cannot be
calculated statistically, it is impossible to determine
the amount of premiums that would be required to
accumulate a common fund, or pool, to meet the
losses arising.

3- The occurrence of loss must be
fortuitous:

Although it is known what losses will
occur and that the frequency of loss can be
measured, a specific loss must be unforeseen.

4- There must be an insurable interest to
protect:

Insurance contract provides security
against the consequences of a loss. A contract
of insurance is fundamentally concerned with
preserving the interest of the insured.

9 Lif11/life/life08