by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is Bayes’ Theorem?Bayes’ theorem refers to a mathematical formula used to determine conditional probability. The theorem was named after Thomas Bayes, an 18th-century British mathematician. This theorem offers a method of revising existing theories or...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is Bobtail Liability Insurance?Bobtail liability insurance is an insurance policy that covers only liabilities, it is used by owners or operators of semi truck. This insurance policy provides vehicle liability coverage and can be used for trucks or trailers that...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is a Basket Retention Policy? A basket retention is an insurance policy that provides coverage for losses resulting from different types of risks. The basket retention policy costs the insurance company lesser amounts for coverage of losses from multiple risks as...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is an Accelerated Option?In insurance, an accelerated option is a clause or provision in insurance contracts that allows a policyholder receive a portion of insurance benefits earlier than the stipulated time. When a policyholder applies for and receives an...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is the Ambiguity Principle in Insurance?In the insurance industry, the ambiguity principle is a rule that protects the insured from obscurity and inexactness that might be contained in an insurance policy or contract. This principle maintains that if an insurance...
by TheBusinessProfessor | Feb 23, 2025 | Insurance & Risk Management
What is the Burning-Cost Ratio?A burning-cost ratio is the estimation or calculation of excess losses/cost of claims that are more than the total subject premiums collected. It is a rating method commonly used in the insurance industry, this ratio determines the rates...
