(2)
(i)Security and Safety: It gives a sense of security and safety to the businessman. It enables him to receive compensation against actual loss. He can concentrate on his business with a secure feeling that in case of losses arising from insurable risk, his losses will be compensated.

(ii) Distribution of risk: Risk in insurance is spread over a number of people rather being concentrated on a single individual.

(iii) Normal expected profit: An insured trader can enjoy normal margin of profit all the time. He is protected from unexpected losses because of insurance.

(iv) Easy to get loans: A trader can get bank loans easily if his stock or property is insured, as insurance provides a sense of security to the lenders.

## (v) Advantages of Specialization: Businessmen can concentrate on their business activities without spending more time on safeguarding their property. The insurance companies, on the other hand, can provide specialized insurance services.

(9)
(i)Large Numbers of Exposure Units: The prime necessity for a risk to be insurable is that there must be a sufficiently large number of homogeneous exposures to combine reasonably predictable losses.

(ii)Defined and Measurable Loss: A second requirement is that the loss should be both determinable and measurable. This means the loss should be definite as to cause, time, place, and amount. Life insurance, in most cases, meets this requirement easily

(iii)Determinable Probability Distribution: The probability distribution of happening of an adverse event is determinable. This condition is necessary to establish a free premium according to the theory of equivalence.

(iv)Calculable Chance of Loss: A fourth requirement is that the chance of loss should be calculable. The insurer must calculate both the average frequency and the average severity of future losses with some accuracy.

(v)Fortuitous Loss: The adverse event may or may not occur in the future and once the insurance company has no control. So naturally, if the event is non-random or the loss has occurred in the past, there is no insurance question.

(5a)
proposal form is a legal document that seeks relevant information from you so that the insurance company understands you well.

(5b)
(i)Objective Risk Assessments
(ii)Impartiality
(iii)Range of Insurer Options
(iv)Accurate Policy Comparisons
(vii)Claim Assistance
(vii)Time Savings

(5c)
An insurance agent is a professional who sells an insurance company’s products to consumers for a commission.

(5d)
(i)Honest
(ii)Sense of urgency
(iii)Reslience
(iv)Passionate

## (v)Communication Skills

(6)
(i)Reinsurance helps decrease risk:- When an insurance company singularly insures a large number of clients and their property, they take on a huge amount of risk. Reinsurance is a great strategy to reduce that risk, placing some of the burden on a reinsurance company instead of shouldering the burden completely alone.

(ii)Reinsurance companies offer valuable advice:- When consumers need insurance advice, they turn to their insurance company. Where can insurance companies turn? Because reinsurance companies are experienced and skilled at understanding patterns in the industry, as well as risks that their individual clients face, they’re in the perfect position to offer guidance and expertise.

(iii)It protects against natural disasters and catastrophic events:- This is especially important in areas with large numbers of high-risk policies. Places that are often plagued by wildfires or that are constant targets for hurricanes and flooding mean that insurance companies covering these areas face the potential of paying out huge numbers of high-dollar claims should a disaster strike.

(iv)Reinsurance can stabilize financial losses:- Perhaps an insurance company has the financial ability to pay out a large number of high-dollar claims. Even so, reinsurance can smooth the way so that a company need not face huge financial losses that may cause undue strain.

(v)It allows a company to take on more policyholders:- Reinsurance helps protect against insolvency. It ensures that insurance companies are able to make payment on all claims, even in the case of a natural disaster or unexpected high number of expensive claims. Because of this, it puts companies on more solid ground, allowing them to offer services to a greater number of clients.