Insurance Works On The Principle Of Probability. To obtain a probability ratio, the number of favorable results in a set is divided by the total number of possible results in the set. B) social insurance, life and health insurance, and general insurance/property and casualty insurance.
The probability ratio expresses the likelihood that the event will take place. Principles of risk management and insurance by george_e._rejda 12th edition, (rubd.academia.eduanumshahriar) Insurance can influence the probability of losses through moral hazard, insurance fraud, and preventive steps by the insurance company.