Following the outline will be a short discussion not conducive to outlining. Insurance is a financial arrangement that redistributes the costs of unexpected losses- via the transfer of losses to an insurance pool. Speculative -Gain or loss possible, uninsurable. Chance of Loss is the probability of loss. Peril is the cause of loss.
Hazards are conditions that increase either the frequency or the severity of losses.
The law states the greater the number of observations of an event, the more likely the actual result will approximate the expected result. Cost of resources usied in the system. Fraudulent losses caused due to the existence of insurance. Exaggerated losses due to insurance. Family and business stability.